Gas tax increases Oct. 1
Montgomery, Ala. – Alabama’s gas tax is set to increase two cents Oct. 1, the second of three planned increases to the state’s share of the tax.
The average cost of a regular gallon is currently $1.90 in Alabama, according to AAA.
The Alabama Legislature passed the Rebuild Alabama Act in 2019 which initially increased the tax by six cents. In 2021, the tax will increase an additional two cents. Beginning in 2023, the tax will be indexed and fluctuate based on the National Highway Construction Cost.
The tax increase is expected to add $35 million of revenue to Alabama’s road and bridge fund.
Some of the road projects approved by the Alabama Department of Transportation (ALDOT) include adding lanes to Alabama Highway 41 in Dallas County, and widening the intersection at Highway 31 and Lorna Road in Hoover.
Large future projects being considered by ALDOT include additional widening of I-65 in the Birmingham area and a new bridge across the Mobile Bay.