While drivers are enjoying low gas prices this holiday season, they may see a jump in rates after the new year.

A 9.8-cent-per-gallon state tax increase on wholesale gasoline takes effect Jan. 1, and costs could be passed on to consumers at the pump.

The hike follows a 9.5-cent-per-gallon state tax increase this year.

The increases are part of the Act 89 transportation funding law signed by Gov. Tom Corbett last year.

“It was nice while it lasted” Larry Stahl of Butler said of the current prices, which are the lowest in four years.

Stahl, who was pumping gas in the city at $2.60 per gallon, said he was not aware of the pending tax hike, but said he won’t be surprised if prices go up.

“They’ll go up sooner or later,” he said.

Prices at the pump may go up next year, but drivers will see benefits from the tax increase.

The revenue from the tax hike goes to the state Department of Transportation and municipalities for road maintenance and improvements.

The state said Act 89 added more than $800 million to PennDOT’s 2014 budget, which totaled $2.3 billion.

Tiffany Kneff of Butler Township, who was filling her car up in the city, said she would be more accepting to increased prices if it benefits the roads.

“If it helps make the roads better, I don’t have a problem with it,” she said. “I think anyone who drives will tell you the roads can be better.”

Kneff, who estimated her car gets about 25 miles per gallon, said rising gas prices wouldn’t change her driving habits.

“I have to drive,” she said. “I don’t really have a choice.”

The tax may take more out of drivers’ pockets, but it will add revenue to local municipalities in the county.

Municipalities across the state received about $345 million in 2014 through the liquid fuels funds.

Center Township expects to receive $311,000 in liquid fuels funds in 2015, up from $296,000 this year.

Ed Latuska, chair of the township’s board of supervisors, said the township uses the money for road repairs.

“It’s spent on general repairs of our roads,” Latuska said. “It will go toward things like asphalt and labor. Really, (the increase) hasn’t changed anything. It’s business as usual.”

While the tax hike won’t necessarily add too much to the township’s project list, Latuska said, the increase does help the township maintain its tax rate.

“We didn’t have to increase taxes for anything, which is good,” he said.

Ed Kirkwood, manager of Butler Township, said his township is set to receive about $483,000 in 2015, up about $30,000 from this year.

“All of it will be spent on salt, the street light electric bill and road maintenance,” he said.

City Clerk Mindy Gall said Butler received a letter in September giving an estimation on the amount the city will be awarded.

She said the city typically receives the funds in March or April.

The city expects to receive about $330,000 in liquid fuels funds in 2015, up from about $279,000 this year. The city will use the money to buy salt.

While the city will be receiving more money, it will coincide with increased costs for salt.

“It’s just enough for our salt,” Gall said.

Gall said if the weather is fair this year, the city may be able to use some of the funds to pay for its street lighting.

“So far the snow has been good for us,” she said.

Gall said the city typically does not use liquid fuels money for road projects.