As fuel prices hover near record highs across the country, a handful of states are doing what some of your closest friends have never been able to manage: chipping in for gas.
Nationwide, the average price at the pump has hovered around $4.25 a gallon all week, according to AAA, down from record highs earlier in the month. But the current cost is still 63 cents a gallon more than just a month ago and $1.36 more than this time last year.
Last week, Connecticut Gov. Ned Lamont signed emergency legislation to pause the state’s 25-cent gas surcharge, and Maryland and Georgia both temporarily killed theirs earlier this month.
Gas prices were rising even before Russia invaded Ukraine, as demand surged and pandemic-related limitations were relaxed. However, nations shifted away from Russia, which is one of the world’s top oil-producing nations, as a result of the incursion.
At the federal level, the Biden administration earlier this month announced the release of 30 million barrels of crude oil from the Strategic Petroleum Reserve in a coordinated effort with allies to ease energy prices around the world. It comes after a similar release of 50 million barrels last fall.
Some members of Congress have also called for the suspension of the federal gas tax, which is just over 18 cents per gallon for gas and 24 cents per gallon for diesel, but it was met with bipartisan opposition, with some lawmakers calling it a “gimmick.” While the Biden administration has left the door open to a gas tax holiday, some officials have voiced concerns over whether companies would actually pass the relief on to consumers.
Americans are feeling the pinch of rising gas prices. Now two states — Maryland and Georgia — are temporarily suspending their gas taxes in order to help their residents save money.
Other states could follow by putting their own gas tax holidays in place.
Maryland lawmakers have suspended the state gas tax for 30 days, which will save drivers 36.1 cents per gallon on gas, or 36.85 cents per gallon on diesel fuel. The gas tax holiday could cost the state almost $100 million.
Georgia’s suspension of its gas tax is slated to last through May 31. The state typically applies levies of 29.1 cents per gallon on gas and 32.6 cents per gallon on diesel.
The national average price of a gallon of gas is currently $4.24, up from $2.88 one year ago, according to AAA.
Numerous states are in the process of deciding to suspend their state gas tax, including Ohio, West Virginia, New York, and New Jersey.
California is eyeing much bigger relief for its residents. Governor Gavin Newsom released a proposal on Wednesday to provide $11 billion in relief directly to California consumers in the form of $400 debit cards per vehicle owned, capped at $800 total. The proposal also includes a three-month gas tax holiday and three months of free public transportation. California’s gas tax is about 51 cents per gallon, one of the highest rates in the country.
But some state lawmakers may have their work cut out for them when it comes to successfully suspending their gas tax. Both state and federal gas taxes are used to maintain roads and highways across the country. Ohio Governor Mike DeWine has used this argument to push back on suspending his state’s gas tax due to its impact on roads in the future.
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