Gas Tax Collections Dip Slightly

In Connecticut

HARTFORD (AP) — The state’s gas tax collection has dropped nearly $3 million since this time last year, suggesting that Connecticut drivers are being more frugal at the pump.

The state Department of Revenue Services reports that Connecticut collected about $297.1 million from the gas tax in the first ten months of the 2006 budget year, compared with $300 million during the same period a year earlier.

The tax, 25 cents a gallon, is added to the price at the pump. According to AAA, the cost of regular unleaded gas, including the tax, in Connecticut averaged $3.14 per gallon in recent weeks.

Susan Hamilton, a spokeswoman for the state Office of Policy and Management, told the Hartford Business Journal that in previous years, collections grew by about four percent a year.

Throughout the current fiscal year, however, the monthly collections have stayed within half of one percent above or below the previous year, she said, calling the new numbers “a dramatic slowdown.”

Eugene Guilford, executive director and chief executive officer of the Independent Connecticut Petroleum Association, said that he has “no doubt” that the price of gasoline has affected consumption.

However, he also said drivers’ conservation has been too small to be noticed.

“Our members aren’t reporting that usage has changed significantly,” he said.

In fact, the $3 million shortfall represents only 1.17 million gallons of gas. That, spread over the ten-month period, is about 117,000 gallons of gas per month.

On a per capita basis, that means Connecticut residents have cut their consumption by one third of a gallon per month, or the equivalent of a few less trips to the grocery store.

Nicholas Perna, economic adviser for Webster Bank, said that while the economy has held strong despite the rising cost of fuel, people might be cutting back on driving.

“I think people have gotten a little bit more careful, from my casual observations,” Mr Perna said. “I even find myself taking my foot of the gas a little earlier when coming to a red light in order to slow down, rather than relying on the brake.”

The summer months, when people tend to travel on vacation, might be the most telling period, Mr Perna said.

James MacPherson, spokesman for AAA in Connecticut, said that so far, members of the auto club are charging ahead with their travel plans.

“We’re seeing no letup in the projected demand in auto travel,” Mr MacPherson said, adding they continue to receive numerous requests from members for maps, routing and other trip information.