While diesel prices retreat, state trucking association seeks tax relief

Yellow and white semi-trucks parked under illuminated canopy at nighttime truck stop

Diesel prices have receded this week, but they continue to be well above where they were a month ago.

In the meantime, one trucking association is asking its state to remove the sales tax it levies on motor fuels.

AAA reports today's national average for on-highway diesel is $6.37 per gallon, down 13 cents per gallon from last Friday's average price of $6.50.

However, today's price remains well above the price of $5.68 a month ago and $3.70 this time in 2025.

In Illinois, the price of diesel today is significantly higher than the national average at $6.71 per gallon, according to AAA.

It's that price that has prompted the state's trucking association to seek relief from the Illinoid Gov. J.B. Pritzker. 

The Mid-West Truckers Association has formally requested State of Illinois consider the emergency suspension or removal of the applicable state sales tax on motor fuel, to provide immediate relief at the pump. 

“A suspension of the state sales-tax component would allow Illinois motorists, farmers, trucking companies, and other businesses to see the savings immediately. At current fuel prices, the savings could amount to more than 30 cents per gallon of diesel,” said Mid-West Truckers Association Vice Prtesident Matt Wells. “If the Governor is about affordability for everyone, then the double taxation of sales tax on top of the motor fuel tax with every gallon of fuel must stop.” 

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In a statement today, the association said other states have taken emergency measures in response to fuel prices, including allowing certain agricultural users to utilize off-road diesel on public roadways under emergency circumstances. 

A suspension of the Illinois state salestax would be a better option to provide relief to residents, farmers and transportation providers. The association said Illinois collects the second highest amount of taxes on motor fuel in the nation and is one of very few states which collect sales tax and a motor fuel tax. 

Any emergency action should be structured so that it does not jeopardize dedicated funding for Illinois roads and     transportation infrastructure, the association said.

MTA said it asks Gov. Pritzker and the Illinois General Assembly to: 

  • Examine an emergency suspension or reduction of the applicable state sales tax on motor fuel.
  • Determine whether emergency authorities exist to provide immediate relief without reducing dedicated Illinois Road Fund revenues.
  • Provide transparent accounting of how much Illinois collects from motor-fuel sales taxes and where those revenues are being spent.
  • Consider permanent or temporary motor fuel sales tax relief measures for farmers, truckers, and other fuel-intensive businesses while fuel prices remain elevated.

 “Illinois residents need relief now, not after another legislative session or budget cycle,” Wells said. “I urge the Governor and General Assembly to use every lawful emergency authority available to provide immediate fuel-cost relief while protecting the dedicated funding necessary to maintain Illinois roads.”

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