How much tax money do I pay at the pump, and what happens to it?

As of 2007, Hoosiers pay about 36 cents per gallon of gas in state and federal taxes, according to government sources. Thirty-six cents is below the national average of 42 cents per gallon, and cheaper than most surrounding states.

The states with the highest and lowest gas taxes, respectively, are Hawaii and Alaska: Hawaiians pay 53 cents per gallon, and Alaskans pay 26 cents.

Regionally, Indiana is pretty cheap: Ohioans pay 40 cents per gallon; Michiganites pay 44 cents; and Illinois residents pay a whopping 48 cents.

Some of what Hoosiers pay in gas tax goes to gas pump inspections, a trifle .008 cents per gallon, and there’s also a 6 percent sales tax. According to the state, almost all of that tax goes to building roads and highways, and repairing roads.

The rest of the cost of a gallon of gas is made-up mostly of the cost of crude oil, and shipping costs.

In an extreme emergency crisis, the governor of Indiana is allowed by state law to suspend the gas tax for up to 120 days. In Oct. 2000, then-governor Frank O’Bannon suspended some of the gas tax, as premium gas prices were edging toward a whopping $2 per gallon.