Oil Company Franchise Tax – Formula Scenarios
OCFT Formula Scenarios
Liquid Fuel (Gasoline) Only
NOTE: Scenarios represent maximum amounts. Because the OCFT is applied at the wholesale level, the cents-per-gallon equivalencies are subject to competitive market forces and may not correlate to a cent-for-cent equivalent price at the retail pump.
CURRENT:
153.5 mills per gallon x Average Wholesale cap of $1.25 = 19.2 cents per gallon
INCREASE CAP BY 25 CENTS:
153.5 mills per gallon x Average Wholesale cap of $1.50 = 23 cents per gallon (possible increase of 3.8 cents per gallon = $247 million)
**INCREASE CAP BY 50 CENTS:
153.5 mills per gallon x Average Wholesale cap of $1.75 = 26.9 cents per gallon (possible increase of 7.7 cents per gallon = $500.5 million)
**INCREASE CAP BY 65 CENTS:
153.5 mills per gallon x Average Wholesale cap of $1.90 = 29.2 cents per gallon (possible increase of 10 cents per gallon = $650 million)
**INCREASE CAP BY 1 DOLLAR:
153.5 mills per gallon x Average Wholesale cap of $2.25 = 34.5 cents per gallon (possible increase of 15.3 cents per gallon = $994.5 million)
**INCREASE CAP BY 1.10 DOLLARS:
153.5 mills per gallon x Average Wholesale cap of $2.35 = 36.1 cents per gallon (possible increase of 16.9 cents per gallon = $1.0985 billion)
TOTAL ELIMINATION OF THE CAP:
153.5 mills per gallon x Average Wholesale cap of $3.11 = 47.7 cents per gallon (possible increase of 28.5 cents per gallon = $1.852 billion)
**Scenario represents an AWP that exceeded present day figures, but realized from 2006 to 2013.
Updated: December 17, 2012
[...] The plan also lifts the cap on the oil franchise tax. The impact to drivers is unclear. The Pennsylvania Highway Information Association calculated the impact if the entire cost of that were to be passed on to drivers. That would amount to 28.5 cents per gallon over five years. To see the analysis, click here. [...]
June 5, 2013 at 8:14 pm