CHICAGO — Illinois drivers are bracing for another bump at the pump. Starting July 1, 2025, the state’s gas tax will officially rise to 48.3 cents per gallon, as part of an automatic annual increase tied to inflation.
The move puts Illinois among the highest-taxed states for gasoline, even as national fuel prices hover lower at $3.12 per gallon, according to AAA.
How the New Tax Breaks Down
Per updated data from the Illinois Department of Revenue, the new tax rates effective from July 1, 2025 to June 30, 2026 will be:
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Gasoline: 48.3¢ per gallon
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Diesel: 55.84¢ per gallon
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LPG, LNG, CNG: 55.84¢ per DGE/GGE
These rates are outlined under Section a-5 of SB1939, a law passed in 2019 that links the fuel tax rate to the Consumer Price Index (CPI). This means the gas tax automatically increases every year without requiring a new vote in Springfield.
Legislative Source: SB1939 Full Text – ilga.gov
Illinois Gas Prices Outpace National Average
According to AAA’s fuel price dashboard, here’s how current averages compare:
| Category | Illinois Avg. | National Avg. |
|---|---|---|
| Regular | $3.349 | $3.124 |
| Mid-Grade | $3.899 | N/A |
| Premium | $4.361 | N/A |
| Diesel | $3.493 | ~$3.33 |
This puts Illinois roughly 20–25 cents above the national average per gallon — and that gap could widen with the new tax hike.
Source: AAA Gas Price Monitor – Illinois
Where the Extra Money Goes
Supporters of the fuel tax say the money is directed toward infrastructure upgrades, including roads, bridges, and public transportation. But critics argue that the automatic increase:
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Hurts low-income families and commuters
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Lacks direct voter oversight
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Fails to deliver transparency on spending
A 2023 audit showed a portion of fuel tax revenue was diverted to administrative overhead and non-road uses, further frustrating taxpayers.
Should gas taxes be tied to inflation — or should drivers get a say in future hikes? Are Illinois lawmakers being transparent with how road dollars are spent?
Weigh in at ChicagoSuburbanFamily.com.
