Senators pass bill to increase liquid fuel tax, price of gas at the pump


By Duane M. George | Pacific Daily News


The Guam Legislature passed a bill to increase the liquid fuel tax by 4 cents over the next three years.


In a news release, Sen. Tommy Morrison said “Eight senators put safer roads before politics” by passing the bill.


Bill 122 would incrementally increase the liquid fuel tax. The first increase would be 1.5 cents per gallon for gasoline and diesel effective Jan. 1, 2018, with another 1.5 cents per gallon increase Jan. 1, 2019, and a 1 cent increase Jan. 1, 2020. The bill also would increase the liquid fuel tax for commercial aviation from 4 cents a gallon to 8 cents per gallon over the same time frame.


The extra money from the tax increase will go to “funding additional secondary road repairs pursuant to the Guam Village Streets Master Plan,” the news release stated.


Gov. Eddie Calvo thanked the senators who voted to increase the tax.


“This bill saves lives and that’s worth the cost,” he said in a news release.


“As we can see from the work done at Hamburger Road and Macheche Avenue, and more recently the work at Umatac, the administration is doing whatever it can,” Calvo said. “With Bill 122, we will be able to do more to fix the secondary and tertiary roads of our island.”


Highway fund purpose


The Guam Highway Fund, which receives revenue from liquid fuel taxes, is, by law, meant to be used for for “The purposes of acquisition of right-of-ways, planning, designing, constructing, reconstructing, improving, repairing, and maintaining of public highways, including roads and city and village streets.”


In recent years, however, the money from the fund has been used to help fund government agencies and programs.


“The Legislature has finally acknowledged that there aren’t enough resources in the highway fund available to address the increasing demands placed on our village streets,” Morrison said in the news release. “The people of Guam are not only waiting for more road repairs to be funded, they’re willing to pay a little more at the pump to make this happen.”




The senators who voted in favor of passing Bill 122:


  • Tommy Morrrison
  • William Castro
  • James Espaldon
  • Fernando Esteves
  • Louise Muna
  • Dennis Rodriguez Jr.
  • Joe San Agustin
  • Vice Speaker Therese Terlaje.


News by Pacific Daily News

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