State Officials Watch Falling Gas Prices With Hope

Tennessee revenue officials hope the falling gas prices in recent weeks mean drivers are taking to the road again.

Every cent of the state’s gas tax goes to Tennessee’s road fund and collections are down 10%. That makes it difficult for the Department of Transportation to keep up with repaving and other projects.

The latest nationwide survey of gas stations shows prices tumbling an average of $0.48/gallon over the last two weeks. Prices at the pump in Middle Tennessee are as low as $1.89/gallon in Murfreesboro.

Revenue spokeswoman Sophie Moery says it’ll take time to find out how Tennessee drivers are reacting.

“Gas tax in Tennessee is difficult to translate into immediate consumption. Because of the point at which gas is taxed, which is at the supplier level, it takes time for that gas to then be distributed to retailers and for consumers to buy it at the pump.”

This time last year when gas prices were inching toward $3.00/a gallon gas tax collections were slightly up over expectations. Moery says the decrease in gas prices and consumption this year shows the widespread financial crunch.