Work Truck Logo
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.


Originally posted on Automotive Fleet

More Fuel

Fuelby Wayne ParhamApril 28, 2026

April Diesel Trends Update

The national average price of a gallon of diesel dropped by more than 5 cents this week, and all but one region reported price decreases.

Read More →
Map of Southern California, surrounded by orange background on left and right, and an inset logo for ChargePoint.
Fuelby News/Media ReleaseApril 20, 2026

ChargePoint & South Coast Air Quality Management District Surpass 90 EV Charger Installations Across Southern California

ChargePoint has enabled more than 90 charging ports for the South Coast Air Quality Management District in Southern California. The project replaced outdated chargers with 55 new, Level 2 ChargePoint units capable of serving 94 vehicles simultaneously.

Read More →
Man in business attire against a blue background with logo for Work Truck and headlines Leadership Update and Pajarito Powder.
Fuelby News/Media ReleaseApril 17, 2026

Pajarito Powder Appoints Hydrogen Industry Veteran as New CEO

Pajarito Powder has appointed Christian Mohrdieck, who has a wealth of experience and knowledge in both the fuel cell and electrolyzer businesses, as its new CEO.

Read More →
Ad Loading...
Chart shows increases or decreases of diesel fuel price in the US and five regions.
Fuelby Wayne ParhamMarch 24, 2026

March Diesel Trends Update

The average price of diesel remains above $5 per gallon in every U.S. region and nationally. With continued oil supply chain challenges in the Middle East, prices are significantly higher than a year ago and also two years ago.

Read More →
SponsoredMarch 1, 2026

Artificial Intelligence in Field Service: North America

48% of field service leaders are investing in AI to manage customer communication and self-service. Get the latest on how fleets are using AI and thinking about the future.

Read More →
Stacked suitcases with a WEX logo at an airport window, illustrating WEX and Engine connecting fuel and travel payments for fleet lodging, rental cars, and airfare.
Fuelby Lauren FletcherFebruary 27, 2026

WEX Expands Payment Platform to Include Discounted Travel Through Engine Partnership

For commercial fleets and trucking operations, the change is designed to address a common pain point: travel expenses that fall outside traditional fuel controls.

Read More →
Ad Loading...
Chart shows increases or decreases of diesel fuel price in the US and five regions.
Fuelby Wayne ParhamFebruary 24, 2026

February Diesel Trends Update

The national average diesel price jumped by nearly 10 cents this week. However, EIA now provides a comparison with prices two years ago, showing diesel is 23.9 cents cheaper now.

Read More →
Background image of an electric cargo truck plugged into a charger and headline 2026 Charging and BEV Outlook.
Fuelby Wayne ParhamFebruary 2, 2026

2026 Outlook for EV Truck Charging

As commercial battery-electric vehicle adoption continues to grow, what is the state of electricity as a fuel source, and what are the growth trends in charging capability in 2026?

Read More →
WEX fleet fuel card with RFID capability shown over a public EV charging station parking area, representing a single payment solution for fuel and electric vehicle charging.
Fuelby StaffJanuary 28, 2026

WEX Adds Public EV Charging to Fleet Card for Mixed-Energy Operations

WEX adds EV charging payments to its fleet card, letting mixed-energy fleets pay for fuel and public charging with one card, one account, one invoice.

Read More →
Ad Loading...
Chart shows increases or decreases of diesel fuel price in the US and five regions.
Fuelby Wayne ParhamJanuary 28, 2026

January Diesel Trends Update

Average diesel prices increased again this week, both nationally and across every region. The national average price increased by more than 9 cents.

Read More →