Which US states are abolishing taxes on gasoline and which will provide assistance to their drivers
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Georgia and Maryland have announced "free days" on the state's gas tax, allowing drivers to save money. However, other US states are also considering waiving fuel taxes or giving consumers a $400 rebate.
Prices are down slightly: A gallon of regular gasoline on Monday costs about one-eighth of a cent less than it did a week ago. But state lawmakers are playing it safe: Maryland and Georgia temporarily suspended state gas taxes on Friday to give motorists a breather.
Many other states are considering similar gas tax holidays, and there is a bill in Congress to eliminate the federal gas tax.
How much are federal and state gas taxes?
The federal fuel tax is approximately 18.3 cents per gallon for gasoline and 24.3 cents per gallon for diesel. There is also a fee of 0.1 cent per gallon leaking underground storage tank.
State taxes on gasoline, which may include excise tax, sales tax, oil inspection fees, county and local taxes, underground storage tank fees, and other fees, vary widely. Pennsylvania is the highest at almost 59 cents per gallon, while Alaska is the lowest at just over 33 cents.
The state's weighted average national tax on gas is approximately 57 cents per gallon.
How much will abolishing taxes on gasoline save?
On Friday, Maryland lawmakers unanimously approved a bill that would suspend gas taxes for 30 days, saving drivers about 36.1 cents per gallon for gasoline and 36.8 cents for diesel.
On a 15 gallon tank, that works out to about $5.42 each time you fill it up.
Maryland Gov. Larry Hogan said the gas tax suspension, which will cost the state nearly $100 million in lost revenue, was made possible by the state's record surplus. He also supports legislation that would suspend automatic tax increases on gas.
On Monday, gas in the state averaged $3.11 a gallon.
Georgia also signs the bill
Georgia Gov. Brian Kemp also signed a bill passed unanimously by the General Assembly that would eliminate state taxes on fuel through May 31, cutting the price of gasoline by 29.1 cents per gallon. Motorists with a 15-gallon gas tank should save about $4.37 per fill-up.
In May 2021, Georgia suspended its state gas tax for almost a week when the colonial pipeline network was shut down. Since then, the cost of gasoline has risen by 56%.
Gasoline prices in Georgia averaged $4,11 per gallon on Monday.
Savings that won't be seen in the short term
However, these savings are not immediately noticeable: any gas already delivered to the stations is already taxed by distributors, and fuel ordered before the start of the pause will also be taxed.
When lower prices are reflected in tanks depends on when your local gas station last ordered fuel and how much fuel is still on the ground.
Are other states considering suspending gas taxes?
Gas tax "holiday" plans are in various stages of development in at least 22 states.
Michigan Gov. Gretchen Whitmer has called for the suspension of her state's 6% gasoline sales tax, while Republicans in the State House and Senate are pushing for legislation to eliminate the state's 27-cent gasoline tax.
Illinois Gov. J.B. Pritzker has proposed freezing the state gas tax at 39.2 cents a gallon, along with other tax credits designed to help residents in need of the money.
Florida Gov. Ron DeSantis pushed to suspend the 26.5-cent gas tax starting in November, arguing that a five-month pause would save consumers more than a billion dollars. Republican lawmakers are "looking at some elements of the governor's gas tax proposal," Rep. Bobby Payne said, but are hesitant to pass the full package.
And after attempts to suspend California's 51-cent gas tax failed, state lawmakers announced Thursday a plan to give every resident a $400 gas tax "refund". The $9,000 billion proposal will be funded by the state's current budget surplus.
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