News

Impact of uncapping the OCFT explained

February 18, 2013

Gasoline Pricing ComponentsIn the wake of Gov. Tom Corbett unveiling his transportation funding plan, there has been considerable discussion over the impact on gasoline prices of uncapping the Oil Company Franchise Tax.

The OCFT is a state tax levied at the wholesale level. To be sure, a wholesale tax will affect the retail price, but state taxes account for only about 11 percent of the price that motorists pay at the pump. A recent op-ed article by John Kulik, of the Pennsylvania Petroleum Association, sheds some light on the various components of retail fuel prices.

Nearly two-thirds of the retail fuel price is driven by the cost of crude oil, Kulik explains, and that cost is determined by world commodity markets. He also notes that federal environmental regulations requiring three grades of gasoline in the summer months in Pennsylvania add significantly to the cost. Some market experts suggest that settling on fewer summertime grades – there are currently about 20 nationwide – could reduce the cost per gallon considerably. Read more

News

Gov. Corbett Unveils Transportation Funding Plan

February 5, 2013

BreakingNewsGov. Tom Corbett unveiled his anticipated transportation funding plan today as part of his 2013 budget proposal.  Corbett unveiled the key elements of the plan during his annual remarks to the General Assembly.

The plan would add an additional $1.8 billion in revenue over the next five years to significantly aid the Commonwealth’s transportation systems.  To view the key elements of the plan, click here.

 

News

PennDOT starts 2013 with $62 million in contract lettings

February 4, 2013

NEW_PENNDOTThe state Department of Transportation (PennDOT) bid slightly over $62 million in projects in January. PennDOT finished the 2012 calendar year with $1.973 billion in lettings. PennDOT’s 2013 letting program forecast is $1.7 billion. Click here to view a chart of the PennDOT letting history since 1994.

To view the full January letting report and year comparisons, click the link below.

*The report lists the total contracts awarded at each letting date, a comparison to the same period in the previous calendar year, and letting adjustments made since the previous month. PHIA staff will track PennDOT lettings throughout the year and provide monthly update.