NATIONAL NEWS

Gas prices are high. But do the numbers support suspending state gas taxes?

Apr 1, 2026, 12:02 PM

A sign shows the price of gas at a store, Tuesday, March 31, 2026, in Freeport, Maine. (AP Photo/Ro...

A sign shows the price of gas at a store, Tuesday, March 31, 2026, in Freeport, Maine. (AP Photo/Robert F. Bukaty)
Credit: ASSOCIATED PRESS

(AP Photo/Robert F. Bukaty)

With the average price of a gallon of gas topping $4 nationally, some federal and state officials have talked of temporarily reducing motor fuel taxes to provide relief to motorists.

So far, Georgia and Utah are the only states to suspend all or part of their gas taxes as the war in Iran has pushed fuel prices higher. Others are considering it. But there are a variety of reasons that policymakers may not relax gas taxes, including concerns about government finances, doubts about the action’s effectiveness and uncertainty about how long the war will last.

Here’s a look, by the numbers, at the debate:

2 states

The two states to suspend gas taxes this year took significantly different approaches. Georgia’s 60-day suspension of its 33-cent-a-gallon gas tax took effect once Republican Gov Brian Kemp signed it into law on March 20, making it the first state to act since the war started. Three days later, Republican Utah Gov. Spencer Cox signed a law temporarily trimming 6 cents off the state’s 38-cent-a-gallon fuel tax. But the six-month reduction won’t begin until July 1.

38 cents

Retail gas stations have charged consumers an average of 38 cents per gallon above wholesale prices over the past five years, according to Jeff Lenard, a spokesperson for the National Association of Convenience Stores. Their profits after expenses often are less than half that, he said. Meanwhile, the daily price for a barrel of oil has swung dramatically during the war with Iran — sometimes by the equivalent of around 40 cents a gallon, Lenard said.

Why do those numbers matter? They highlight the complexity of setting gas prices. When a gas tax is suspended, motorists may not see an equivalent reduction in retail prices. That’s made Republican Florida Gov. Ron DeSantis hesitant to repeat a gas tax suspension he approved when prices last spiked in 2022.

“Our ability to influence the fuel prices are really marginal at best,” DeSantis said in March, adding: “I don’t think the consumer really felt relief.”

61 cents

California charges a nationally high gas tax of 61 cents per gallon, with additional fees on top of that. The tax contributes to California’s highest-in-the-nation gas prices, which averaged $5.89 a gallon on Wednesday, according to AAA. Several Democratic and Republican gubernatorial candidates have called for suspending the gas tax. But the proposal hasn’t gained traction in the Democratic-led Legislature, where some are concerned about how to make up for the lost revenue.

$100 million

Republicans in Maryland pushed for a 30-day gas-tax suspension. But their attempts were rejected by the Democratic-led General Assembly. A spokesperson for Democratic Gov. Wes Moore said a one-month suspension could have blown a $100 million hole in the state’s transportation budget even as officials already were cutting spending and shifting money to make up for a projected shortfall in the state’s overall budget.

A better approach would be to end the war, said Moore spokesperson Ammar Moussa, adding: “The best way to bring prices down is to address the source of the pain.”

Since the war began on Feb. 28, Trump has repeatedly has said it could be over soon while also threatening to widen the conflict.

$330 million

Whether states have the money to make up for lost fuel taxes is a pivotal question. Georgia is dipping into its surplus. In Connecticut, Democratic state Senate leaders have suggested that Gov. Ned Lamont could tap into the roughly $330 million remaining in an emergency fund meant to respond to federal government actions to help offset a proposed one-month suspension of the state’s 25-cent-a-gallon gas tax.

“The fund was created precisely for situations like this: when federal actions create hardship for Connecticut families,” Senate President Pro Tem Martin Looney and Majority Leader Bob Duff said in a statement.

A spokesman for the Democratic governor said Lamont is willing to work with lawmakers on “a smart and strategic pause to the state’s gas tax.”

$800 million

Gas taxes generally pay for building, expanding and repairing roads and bridges. Unless funds are shifted from elsewhere, suspending a gas tax means less money for transportation projects, including some that may already have been budgeted.

In South Carolina, the state gas tax provides about $800 million yearly, helping to fund nearly $7 billion of projects ranging from safety improvements on two-lane roads to a massive overhaul of interstate interchanges. Republican Gov. Henry McMaster worries that major projects would take longer and cost more if tax revenue were cut. He dismissed the suspension of gas taxes as a “sort of knee-jerk reaction.”

“We’d like them all to be lower and lower,” McMaster said, “but that’s one we should not take any money out of.”

___

Associated Press writers Jeffrey Collins, Susan Haigh and Brian Witte contributed to this report.

Please follow our Community Guidelines

National News

Options trader Marty Handler works on the floor of the New York Stock Exchange, Thursday, Aug. 27, ...

Associated Press

Investors prosper and consumers pay as the Iran war exacts an uneven economic toll 6 months in

NEW YORK (AP) — As the U.S. and Israel relentlessly bombed Iran in the opening days of war, the most dramatic predictions of the conflict’s toll were unsparing: surging oil prices, worldwide recession and economic catastrophe. But six months into the conflict, the direst predictions haven’t come true even if no corner of the world’s […]

60 minutes ago

This photo released by Mono County Sheriff Search and Rescue, shows a rescuer with the man who was ...

Associated Press

Volunteers rescue climber stranded on small ledge in California’s Sierra Nevada

MAMMOTH LAKES, Calif. (AP) — Volunteers carried out a more than 15-hour operation to rescue a man who got off route in the Sierra Nevada and was stranded on a small ledge, the Mono County Sheriff Search and Rescue Team said. A four-person team carried out the rescue last weekend near Mammoth Lakes, California, in […]

2 hours ago

Fairgoers pass the Tilt-A-Whirl, Thursday, Aug. 27, 2026, at the Minnesota State Fair in Falcon Hei...

Associated Press

Spinning and dipping, Minnesota fairgoers delight in the classic Tilt-A-Whirl ride as it turns 100

FALCON HEIGHTS, Minn. (AP) — With screams and giggles, whipping ponytails and white-knuckle grips, Minnesota fairgoers are taking delight in the magic of the Tilt-A-Whirl ride as it turns 100 years old. The iconic ride and its brightly colored cars debuted at the Minnesota State Fair in 1926, and it has been a mainstay at […]

4 hours ago

FILE - Olivia Rodrigo performs at the Glastonbury Festival in Somerset, England on June 29, 2025. (...

Associated Press

Olivia Rodrigo’s festival is uniting women and girls behind nonprofits promoting their well-being

Evoking the same do-it-yourself pop-rock feminism of her ’90s musical influences, Olivia Rodrigo raised $20 million for women’s well-being with a benefit show that activated her young audience. Daisy Chain Fields united a women-led lineup boasting queer pop star Chappell Roan, breakout rapper Doechii and riot grrrl pioneers Bikini Kill behind issues of women’s health, […]

4 hours ago

Associated Press

An officer is dead and a second was injured in a shooting at South Carolina park, police chief says

COLUMBIA, S.C. (AP) — A police officer in South Carolina’s capital city died and a second was injured Saturday in a shooting at a park, the Columbia police chief said. The suspect also died, said Columbia Police Department Chief W.H. “Skip” Holbrook. Holbrook said at a news conference Saturday evening that the incident began as […]

9 hours ago

FILE - Students walk through the Stanford University campus, March 14, 2019, in Santa Clara, Calif....

Associated Press

Trump cannot deport students for criticizing Israel, judge rules

SAN JOSE, Calif. (AP) — Citing the importance of the First Amendment, a federal judge in California says the U.S. government is unconstitutionally silencing critics of Israel’s war in Gaza and others as part of the Trump administration ‘s quest to deport noncitizens who it says disrupted college campuses while expressing their views. Judge Noël […]

15 hours ago

Gas prices are high. But do the numbers support suspending state gas taxes?