A fuel tax hike could save Tennessee consumers up to $1,300 annually, according to a report from the Tennessee Department of Revenue.
The report is based on data from the U.S. Energy Information Administration.
In 2018, Tennessee consumers paid an average of $3,749 per gallon on average.
The state currently has a fuel tax of 5.5 cents per gallon.
The 2018 rate is scheduled to rise to 6.5¢ in 2019, when the federal tax rate is due to increase.
It will remain 6.75¢ in 2020, when President Donald Trump’s plan to repeal and replace Obamacare kicks in.
A statewide average of about $1.5 million was generated in 2019 by a $3.9 million sales tax increase, according the report.
The tax was approved in 2016 by a statewide vote of 55.6 percent.
The rate would have been 8.5 percent if the measure had gone to voters.
The Tennessee Department on Monday also issued a request for proposals to boost the state’s gas tax, which currently stands at 3.8 cents per Gallon.
The department wants to raise it to 5.8 percent.