Automotive Fleet
MenuMENU
SearchSEARCH

Highway Bill Would Equalize Taxes of Alternative Fuels

The U.S. House of Representatives recently passed a highway and transportation bill that included a provision that would change how certain alternative fuels are taxed in relation to conventional fuels.

by Staff
July 16, 2015
Highway Bill Would Equalize Taxes of Alternative Fuels

 

2 min to read


A provision within the House-passed highway and transportation bill, H.R. 3038, would equalize the tax disparity between alternative and conventional fuels.

Currently, LNG and diesel are taxed at the same rate of 24.3 cents per gallon even though LNG produces 58 percent of the energy output of diesel and propane is charged the same 18.3 cents per gallon that gasoline is charged while only producing 72 percent the energy output, according to a release from Rep. Todd Young (R-Ind.).

Ad Loading...

Under the new provision, federal highway excise taxes on liquefied natural gas and propane autogas will be levied based on the fuels’ energy output instead of their volume and will have their rates changed to 14.1 cents per gallon and 13.2 cents per gallon respectively.

The bill, which passed 312-119, would provide $8 billion in funding to highway and infrastructure expenditures through December 18. Funding would mainly come from applying $3 billion of savings from Transportation Security Administration fees and $5 billion from tax-compliance measures.

Although the bill passed with a majority vote, many Democrats criticized the bill for only being a short term solution where a long term solution is needed.

Rep. Bill Shuster said in a statement that the approval of H.R.3038 will give Chairman Paul Ryan and the Ways and Means Committee time to come up with a long-term transportation bill that is fiscally responsible.


More Fuel

Graphic showing U.S. gasoline prices as of June 15, 2026. Regional averages: East Coast $3.91, Midwest $3.86, Gulf Coast $3.52, Rocky Mountain $4.10, and West Coast $5.23 per gallon.
Fuelby Faith HowellJune 16, 2026

June Fuel Update: Prices Fall Below $4

Drivers are finally getting some relief at the pump. The national average gas price has dropped below $4 a gallon for the first time in months, with prices falling in 47 states as oil markets react to developments in U.S.-Iran negotiations.

Read More →
Row of fuel nozzles at gas station
Fuelby Chris BrownMay 30, 2026

Study: How 2026's Gas Price Hikes Affect Different Vehicle Types

New data from iSeeCars reveals how rising fuel costs have affected different vehicle segments as gasoline prices climbed nearly 46% over the past four months.

Read More →
fleetio coast pay
SponsoredMay 29, 2026

Are You Tracking Your Fleet's True Total Cost of Ownership?

Bobit Business Media surveyed 190 fleet professionals and found that while most fleets are tracking costs, fragmented systems and data gaps are keeping true TCO visibility out of reach. With rising pressure to control spend in an increasingly volatile environment, the gap between what fleets think they know and what the data actually shows is wider than you might expect. See how your peers are managing costs today and where the industry still has room to improve.

Read More →
Ad Loading...
An EIA and Automotive Fleet graphic breaks down fuel prices for the week of 5/28/2026.
Fuelby Faith HowellMay 5, 2026

May Fuel Update: All Regions Experience Declines

Gas prices are finally easing in much of the country, but experts warn global tensions could quickly reverse the trend as the national average remains well above last month’s levels.

Read More →
Graphic showing U.S. gas prices April 2026 with line chart near $4.04 per gallon and regional bars: West Coast highest at $5.41, others around $3.68–$4.02, indicating rising fuel costs.
Fuelby Faith HowellApril 29, 2026

April Fuel Update: Prices Climb Above $4 as Spring Surge Accelerates

National average jumps to $4.04 per gallon, up sharply from last year, with West Coast prices topping $5 and further increases expected amid rising oil tensions.

Read More →
Graphic reading “Fuel-Saving Strategies” with fuel pump and droplet icons, representing fleet management tips on policy, in-network fueling, and maintenance to reduce fuel costs.
Fuelby Faith HowellApril 27, 2026

Tips from Fleet Managers on Saving Fuel Costs

Fleet leaders share practical strategies to reduce fuel spend through smarter policy, routing, and driver guidance.

Read More →
Ad Loading...
Graphic showing U.S. average gas prices for March 2026 with a line chart and regional breakdown, highlighting rising prices and highest costs on the West Coast above $5 per gallon.
Fuelby Faith HowellMarch 31, 2026

March Fuel Update: Prices Settle With a $4 Average

Fuel prices significantly slowed this week, but a $4 national average is still expected.

Read More →
Two men seated at a table during an interview about fleet fuel strategy, with on-screen text reading “AWP Safety Bob Adamski Senior Director of Fleet.”
Fuelby Chris BrownMarch 20, 2026

Bob Adamsky on Fuel Volatility: “Don’t Panic — Have a Plan”

With oil prices rising again, AWP Safety’s fleet manager shares how to respond to rising fuel costs and how the right strategy can turn fuel spikes into cost-saving opportunities.

Read More →
gas pump dispensing money on Middle East map
Fuelby Chris BrownMarch 13, 2026

Oil Market Turbulence Is Complicating Fleet Cost Planning

Rapid swings in crude oil prices driven by the conflict in the Middle East could create longer-term cost pressures for fleets, affecting fuel prices, supply chains, and vehicle strategy, says NTEA’s Andrew Wrobel.

Read More →
Ad Loading...
A chart with EIA data shows an increase in U.S gas prices. Next to it, a chart breaks down the prices by region.
Fuelby Faith HowellFebruary 25, 2026

February Fuel Update: Prices Inch Higher for Third Week in a Row

The final February fuel update reveals prices continuing to inch higher for the third week in a row.

Read More →