HAMMOND, Ind. (AP) – Gasoline tax increases in Illinois are likely to bring more drivers to look for better prices in Indiana, but it's not clear if a higher tax on cigarettes will have the same effect, industry analysts said.
As of July 1, the gasoline tax in Illinois will double from 19 cents per gallon to 38 cents per gallon compared to the 29 cents per gallon tax in Indiana.
"The gas station convenience store industry in Illinois is on the list of endangered species," Fleischli, executive vice president of the Illinois Petroleum Marketers Association, told The Northwest Indiana Times.
Patrick DeHaan, oil analyst at GasBuddy.com, agreed.
"Drivers who shop will find easy savings by going to Indiana, which will likely result in a loss of gallons for Illinois," DeHaan said.
Also next month, cigarettes will cost $ 1 more per package in Illinois in addition to the $ 1.98 tax per package already in effect. Elena Ivanova, from the Chicago Department of Health, told the Associated Press that the cigarette tax in the city – already the highest in the country – would increase to $ 8.16 per pack.
In comparison, Indiana taxes each centile of cigarettes at 95 cents.
Gus Olympidis, CEO of Family Express convenience stores, said that although Indiana's cigarette taxes are much lower, this cost advantage could be lost in the next legislative session, when Indiana lawmakers could again consider raising taxes on cigarettes.
A proposal to increase the tax of $ 2 per package failed this year in the Indiana legislature, despite polling support and support from the Indiana Chamber of Commerce.
Nevertheless, Fleischli predicts that the combined cigarette and gas tax hikes will be devastating for Illinois businesses.
"The borders will expand and our customers will cross them to buy fuel, cigarettes and other ancillary items, which will cost the state's taxes and corporate profits," he said. he declared. "Our fuel volumes will drop by 2% to 3% per year for about three years, then begin to recover, domestic sales will drop from 10% to 12% and may never recover."