About a third of US states cut taxes or eased diesel rules — Dawn
About a third of US states have cut or temporarily suspended fuel taxes and eased certain restrictions on diesel fuel amid a sharp rise in gasoline and diesel prices ahead of the November midterm elections. As Dawn reports, local authorities are seeking to reduce the impact of high energy costs on drivers, farmers and businesses.
According to AAA, the average US gasoline price fell by nearly 7 cents in the week ending October 1, to $4.41 per gallon. At the same time, the average price in September was a record $4.33 per gallon for that month — 50 cents higher than the previous September record set in 2023. AAA links the price pressure to instability in the oil market caused by the conflict in the Middle East and shipping problems through the Strait of Hormuz.
Tax holidays in the states
Ohio lawmakers approved a 90-day suspension of state taxes on gasoline and diesel fuel, and Governor Mike DeWine signed the measure. Georgia reinstated a 30-day suspension of its motor fuel tax. Indiana extended its existing tax holiday and eased rules for tax-exempt diesel.
More current news is available on the UA.News Telegram channel Telegram.
Utah reduced its gasoline tax by 6 cents per gallon until the end of the year. Illinois and Kentucky delayed or froze planned increases in motor fuel taxes. California allowed an early switch to a cheaper winter gasoline blend to increase supply and lower prices.
Easing diesel rules
Alabama, Arkansas, Louisiana, Missouri, Nebraska, North Carolina, North Dakota, Oklahoma and Texas have temporarily eased restrictions or oversight concerning marked diesel fuel. Usually, such tax-exempt diesel is intended for agriculture, commercial use and other specified categories. In Texas, the assistance mainly applies to commercial and agricultural diesel rather than gasoline for ordinary drivers.
At the federal level, lawmakers proposed introducing nationwide gasoline tax holidays, but no such decision was adopted. New York, Virginia, Maryland and the District of Columbia have not currently introduced gasoline tax breaks. At the same time, cuts to fuel taxes reduce state revenues used to finance roads and other transport infrastructure.
