PA diesel tax remains the same in 2025
Diesel fuel will be taxed at 74.1 cents per gallon
The Pennsylvania Department of Revenue published a notice in the Pennsylvania Bulletin regarding the 2025 Oil Company Franchise Tax and Alternative Fuels Tax Rates.
The December 14 notice explains the Oil Company Franchise Tax rates will remain at the following amounts in 2025:
- Gasoline: 57.6 cents
- Diesel fuel: 74.1 cents
The notice reads: "For the 12-month period ending September 30, 2024, the Department has determined that the average wholesale price for all grades of gasoline and diesel fuel was $2.55 per gallon, therefore, the average wholesale price for 2025 is set at the floor of $2.99 per gallon."
"The tax imposed upon the use or sale and delivery of 1 gallon of liquid fuels (primarily gasoline) shall remain at 57.6¢, and the tax imposed upon the use or sale and delivery of 1 gallon of fuels (primarily undyed diesel fuel) shall remain at 74.1¢."
The notice also includes 2025 tax rates for alternative fuels:
Alternative | Rate of Conversion | Tax Rate per Gallon |
Ethanol | 76,330 | $0.384 |
Methanol | 57,250 | $0.289 |
Propane/LPG | 84,250 | $0.425 |
E-85 | 82,056 | $0.413 |
M-85 | 65,838 | $0.332 |
Electricity | 3,414 BTU/kWh | $.0172/kWh |
Alternative | GGE Equivalent | Tax Rate |
CNG | 1 | $0.576 |
Hydrogen | 1 | $0.576 |
Alternative Fuels under DGE Formula (1 DGE =1.7 gallons) | DGE Equivalent | Tax Rate |
LNG | 1 | $0.648 |