Pennsylvania's annual gas tax increase is affecting Exxon's customers, said Larry Johnsonbaugh, manager of Graham's Exxon, 815 S. Allen St.

"Yeah, it will put the [gas] price up. It puts us a little higher. People get more conscious as the price goes up," Johnsonbaugh said.

However, Charles Guyer, manager of State College Texaco South, 1310 S. Atherton St., said customers have not mentioned their concerns regarding the price hike.

"What else are you going to do?" Guyer said. "People don't care."

Guyer added that a lack of alternative transportation forces Pennsylvania residents to pay the higher gas tax.

Since Jan. 1, Pennsylvania motorists have paid 3.8 cents more per gallon, while diesel fuel prices have increased by 5.2 cents per gallon.

The state gas tax hike will not change until Jan. 1 of next year.

Johnsonbaugh said only a few customers have talked about the increase in gas prices.

"There's really nothing we can do," he said.

The Pennsylvania Department of Revenue met to set the rate on Sept. 30. Steve Kniley, department spokesman, said the tax is a function of the average wholesale price of gas, which is based on the average cost of all grades of gas and diesel fuels.

The average price of diesel fuel is 36.4 cents a gallon and the average price of gas is 30 cents a gallon.

"It's a larger increase than we had seen in recent years, but that's because the price of oil [has increased]. It's purely the function of the cost of oil," Kniley said.

Last year, the average wholesale price was 91.9 cents per gallon, and this year it is $1.17 per gallon.

The average wholesale price is capped at $1.25. Kniley said the cost could increase at most by 8 cents per gallon because an increase past that point would go over the set cap.

Some students, such as Megan Glazier (sophomore-crime, law and justice and history), who is from North Carolina, said they are not surprised with the increase in Pennsylvania.

"It's more expensive at home than it is here," Glazier said.

Kniley said the increase in average wholesale price for gas has caused the oil franchise tax to increase, as well. He added that if the average wholesale price for gas decreases this year, consumers will see a decrease in the gas tax next year.

Steve Miskin, spokesman for House Majority Leader Sam Smith, R-Jefferson, said the money from the oil company franchise tax goes to PennDOT's motor license fund.

"The money will go to improve Pennsylvania's roads and bridges," Miskin said.

Miskin said the tax is a way of getting money for mass transit and said there would be an extra $250 million this year from the tax.

Pennsylvania has a 12-year plan that prioritizes the road and bridge projects throughout the state. Miskin said the oil franchise tax was part of former Gov. Tom Ridge's proposals to improve mass transit in the state.

"We had terrible roads and wanted to improve them," Miskin said.

It is not mandatory that the tax increase be passed onto customers, Miskin said.

"Some of it will be, some of it won't be [passed to customers]. Because of the competition some [business owners] will eat it," Miskin said.

Miskin said the tax increase is higher than normal, but he said such an increase is to be expected since the price of gas has increased from a year ago.

"It's a business decision they'll have to make about whether to pass it along," Kniley said.