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By Anna Skinner
Associate News Editor
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Gas prices continue to rise nationwide despite proposed or enacted legislation at the state level aimed to bring relief to Americans at the pump.
As of Wednesday, the AAA national average for a gallon of regular gasoline was $4.74, while the average price for a gallon of diesel sat at $6.52. The prices have held steady from their Tuesday level but have risen by 11 cents and 21 cents respectively since last week, and by 38 cents and nearly 90 cents, respectively, over the past month.
The surging prices come at a volatile time for America’s political climate with less than 50 days until midterm elections, which will determine whether Republicans or Democrats control the House and Senate. The elections will have a big influence on the last two years of President Donald Trump’s presidency, and gas prices are shaping up as a major issue that voters are thinking about before they head to the polls.
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Several actions have been taken at the state level to lower gas prices. As of September 23, here’s where those measures stood:
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States With Relief Enacted This Year
Several states have taken measures to lower gas prices, such as suspending taxes and or approving rate freezes.
"Most of the savings from gas tax holidays are passed on to consumers," Adam Hoffer, director of excise tax policy at the Tax Foundation, told Newsweek. "We would expect around 80 or 90 percent of the rate cut to manifest in the form of lower prices for drivers, with the rest of the savings going to suppliers and producers."
Georgia
In Georgia, Governor Brian Kemp issued a state of emergency and an executive order that suspended the motor fuel excise tax from March 20 through June 2. The suspension dropped prices by around 33 cents per gallon, but it has since expired.
Illinois
A public act signed on June 16 in Illinois suspended a scheduled Consumer Price Index adjustment set to take effect July 1. This action was equivalent to a rate freeze on the motor fuel tax rate. It remains in effect through December 31.
Indiana
Governor Mike Braun in Indiana has suspended both the gas excise tax and gas usage tax, which saves almost 60 cents at the pump per gallon. The current measure is set to remain in place through October 5, although Braun has extended it several times in the past.
Kentucky
Kentucky Governor Andy Beshear has frozen the gas tax expected to take effect in January of next year and declared a state of emergency that reduces the price of gas by 10 cents per gallon in Kentucky.
Utah
Utah reduced its state gas tax by 15 percent, which will remain in effect through December 31.
Pending Legislation and Proposals
Several states are in the proposal process of gas relief measures. They include:
Ohio
Ohio legislators are considering an action proposed by Republican gubernatorial candidate Vivek Ramaswamy that would suspend the state’s gas tax for 90 days.
Massachusetts
Massachusetts lawmakers are also considering a gas tax holiday after Governor Maura Healey proposed suspending the state’s 24 cent tax for two months earlier this week. To go into effect, the state legislature would need to approve the measure.
"Both Ohio's and Massachusetts' proposed gas tax suspension would translate to temporarily lower fuel prices for drivers," Hoffer told Newsweek. "Ohio's gas tax is greater (38.5 cents per gallon (cpg) for gasoline) than Massachusetts' rate (24 cpg), so the savings to drivers would be greater in Ohio."
Proposals Discussed but Stalled, Rejected or Opposed
Several other states have either cut down similar efforts or not pursued calls to implement relief measures. For example, a gas tax holiday bill in Arizona stalled in the Senate. A bill in Alabama died in committee, which also happened to a bill in California. Meanwhile, lawmakers and elected officials in Connecticut, Florida, Maryland, New York, Pennsylvania, South Carolina and West Virginia have pushed various forms of fuel-tax relief, though those efforts have yet to result in statewide gas-tax cuts.
What Does Gas Tax Pay For?
Gas taxes can help pay for state transportation funds or maintenance projects. The tax revenue supports highway and road spending.
In some cases, state leaders have pushed back against suspending the gas tax out of concern over the monetary loss. For example, in Maryland, Democrats rejected a proposal that might save money at the pump but would create a $100 million deficit in the state's transportation fund, WBAL reported.
"The biggest downside is that these tax cuts will create a crater in the transportation budget," Hoffer said. "Nearly all fuel tax revenue funds road construction and maintenance. Cutting the primary revenue stream for roads means that states will either need to cut back on transportation projects, or more likely, need to backfill those missing revenues from other state revenue sources."
What Happens Next
Gas prices and state relief efforts will likely remain major conversation topics before the midterms. For gas tax suspensions that could expire soon, such as in Indiana, it's possible legislators will act to extend the relief period. For other states where proposals haven't yet become law, such as Ohio and Massachusetts, discussions will likely continue as both Democrats and Republicans attempt to address voter concerns before the midterms.
Contact Newsweek editors on this story: Edward T. Cummins
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