Skip to Content

Attention College Students: Applications for the 2017 Summer Policy Institute are now open! Click here to apply. 

Motor fuels tax, What's That?

Oklahoma levies excise taxes on gasoline at 17 cents per gallon and diesel at 14 cents. Fuel used by governments and Indian tribes is exempt and farm users may have the tax refunded. The general sales tax does not apply to gasoline. Tribes may compact with the state to receive part of the fuel tax collections.

This tax is collected by wholesale fuel vendors and paid to the Oklahoma Tax Commission. The tax then is included in the price paid at the pump. Nearly two-thirds of the amount collected goes to the State Transportation Fund for appropriation to the Oklahoma Department of Transportation. About one-third goes to local governments for roads and bridges. Small amounts are restricted for other forms of transportation. None goes to the state’s General Revenue Fund. Unlike many states, local governments may not levy their own gas tax.

Oklahoma first levied a gas tax in 1933; the last increase was in 1987. Oklahoma has gone longer than any state other than Alaska without raising its motor fuel tax. The state collected $202.1 million from the gasoline tax and $80.3 million from the diesel tax in FY 2014; together, they accounted for 3.6 percent of state tax collections.

Look up more terms »