States mull suspending gas tax to cut prices. Is yours next?
States mull suspending gas tax to cut prices. Is yours next?
Eduardo Cuevas and Sarah D. Wire, USA TODAYTue, March 24, 2026 at 10:04 AM UTC
0
Amid soaring fuel costs due to the United States and Israel’s war with Iran, Georgia became the first state to temporarily suspend its gas tax for drivers filling up at the pumps.
But don't expect a mass of other states, led by Republicans or Democrats, to follow suit anytime soon.
At least three other states have pending legislation to reduce or suspend gas taxes, but two aren't moving anywhere.
Prices at the pump have soared more than a dollar since a month ago, according to AAA. On March 23, the national average was at $3.95 a gallon.
1 / 0Latest photos capture US and Israeli strikes against Iran
Smoke rises following an explosion, after Israel and the U.S. launched strikes on Iran, in Tehran, Iran, February 28, 2026.
Drivers across the country are looking for an end after President Donald Trump ordered strikes on Iran on Feb. 28. Iran responded by closing the Strait of Hormuz, blocking about a fifth of the world's oil from moving to global markets.
As Americans worry about the price at the pump, at least one state has tried to offer some relief, albeit temporarily. On March 20, Gov. Brian Kemp, a Republican, suspended the state’s motor fuel tax for 60 days. The excise tax on gasoline is currently 33.3 cents per gallon, and a few cents higher on diesel.
A man pumps gas at a Shell station as the price of oil and gas has surged amid the U.S.-Israeli conflict with Iran, in Washington, D.C.
“Hardworking Georgians know best how to spend their money, not the government,” Kemp said in a statement.
Utah has a bill, which would temporarily lower the tax amount 15% to nearly 32 cents from July through December, that is on GOP Gov. Spencer Cox's desk, according to Lexi Elio, a researcher at the nonpartisan National Conference of State Legislatures.
In Florida, Gov. Ron DeSantis, a fellow Republican, cautioned on suspending the state’s gas taxes.
“Our ability to influence the fuel prices are really marginal at best,” he told reporters on March 19. “We have done gas holidays in the past. Sometimes, the price just gets raised so that the consumer doesn't see any difference.”
Advertisement
He said Floridians didn’t feel relief from past gas holidays because of fluctuations in oil prices. Instead, he said, the ultimate solution is ensuring good international markets, which is a federal issue.
California Gov. Gavin Newsom, a Democrat who's considered a potential candidate for president, pointed to gas tax holidays in Florida as an example of any suspension not helping drivers but benefiting companies.
"That's just being pocketed by big oil," he told reporters March 19. " And you're paying the price."
The state's gas tax, at 61 cents per gallon, helps pay for roads, bridges, jobs and infrastructure investment, he said. California pays the nation's highest price in taxes on gas. Two state bills have been introduced to freeze the gas tax, but questions loom on revenue losses, Elio said.
"Donald Trump is the driver of these spikes in the cost of gas and oil, not only here in California, across the United States," Newsom said.
President Donald Trump speaks to the media near Marine One, flanked by U.S. Secretary of State Marco Rubio, as he departs the White House for Florida, in Washington, D.C., March 20, 2026.
New York Gov. Kathy Hochul, a Democrat, similarly viewed risks of a gas tax holiday. When tax relief occurs, companies simply raise prices, so consumers only see prices increase, she told reporters March 16.
"This is a problem created by the federal government," she said, adding the federal gas tax is almost 20 cents per gallon.
"We need them to give relief and also help us out here," she said. "They created this. You need to solve it. You break it, you fix it."
In Maryland, Gov. Wes Moore and fellow Democrats in control of the state Legislature have reportedly dismissed suspending gas taxes, instead blaming Trump for soaring costs. The governor's office said a 2022 gas tax suspension cost the state $98 million.
"This war is costing more than a billion dollars a day and driving up the price of oil, fuel, and everyday goods," Ammar Mousa, a spokesperson for Moore, said in a statement. "The best way to bring prices down is to address the source of the pain, not shift the cost of Donald Trump’s war onto Maryland families.”
This article originally appeared on USA TODAY: States mull suspending gas tax to cut prices amid US war in Iran
Source: “AOL Breaking”
