Move Over WA, Oregon’s Gas Taxes Rising January 1st

Oregon has not seen the spikes experienced by Washington drivers due to the carbon credit program (Climate Commitment Act), which has raised gas prices over $1.00 per gallon in many areas. But Oregon’s gas tax is going up in January.

Tax will rise from $.38 to $.40 cents per gallon

The Oregon Department of Transportation (ODOT) has released a reminder to drivers about the pending increase, which will begin January 1st, 2024.

Oregon’s gas tax is currently $.11 cents cheaper than WA state, but WA prices have shot up due to the carbon credit program.

Vehicles that use other forms of fuel will also see increases, according to ODOT:

• “Hydrogen (product code 259) is taxable as a use fuel at $0.40 per kilogram or gasoline gallon equivalent (GGE); hydrogen may also be taxable as a motor vehicle fuel in local jurisdictions.

• Compressed natural gas (CNG), product code 224, is taxable as an Oregon use fuel at $0.40 per gasoline gallon equivalent (GGE) or 5.66 pounds; CNG may also be taxable as a motor vehicle fuel in local jurisdictions.

• Liquefied natural gas (LNG), product code 225, is taxable as an Oregon use fuel at $0.40 per diesel gallon equivalent (DGE) or 6.059 pounds; LNG may also be taxable as a motor vehicle fuel in local jurisdictions.

• Propane, pentane, and any mixture of propane and pentane are now classified as liquefied petroleum gas. Liquefied petroleum gas will be reported as product code 054 and is taxable as an Oregon use fuel at $0.40 per gasoline gallon equivalent (GGE), 5.75 pounds, or 1.353 propane gallons.”

The increase also includes some changes, beginning January 1st, local, state, and federal government as well as school districts will no longer have to be licensed as what is called “use fuel users.”  A use fuel user is someone who purchases untaxed fuel for transportation.  This new change removes the license requirement for them.