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PA Gas Tax Increase Set For January 1

PHILADELPHIA (CBS) -- The wholesale tax on gasoline sold in Pennsylvania is sent to increase for the third time in four years come January 1.

PennDOT spokesman Rich Kirkpatrick says this is the last of three planned, phased-in wholesale gas tax increases, the first of which, in January 2014, was nine cents per gallon.

The second a year later was ten cents per gallon. And the next increase of eight cents per gallon will take place January 1.

Kirkpatrick says the cumulative effect of a transportation revenue bill enacted in 2013 is big.

"It's allowing PennDOT to invest roughly an additional billion dollars a year into the road and bridge system… that for Philadelphia, it means continued work replacing and improving Interstate 95."

Other projects include improvements to Routes 422 and 322. As of January, Pennsylvania's tax on wholesale gasoline will reach 58 cents a gallon.

Pennsylvania no longer has a gas tax at the retail level.

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