US States Move to Cut Fuel Costs as Gas Jumps More Than $1.50 a Gallon
Updated
Updated · POLITICO · Sep 30
US States Move to Cut Fuel Costs as Gas Jumps More Than $1.50 a Gallon
3 articles · Updated · POLITICO · Sep 30
Summary
Ohio lawmakers could take up a gas-tax suspension Wednesday, joining Georgia, California, Texas and others that rolled out fuel-cost relief as voter anger rises before elections.
Oil is the main problem: U.S. benchmark crude is about $30 a barrel above prewar levels, gasoline averages more than $1.50 a gallon higher, and diesel has climbed above $6.50.
California moved first this week by suspending summer-blend gasoline rules early, a step AAA says could trim 10 to 30 cents a gallon; Georgia paused its 25-cent gas tax for 30 days.
Texas instead widened access to off-road diesel after Gov. Greg Abbott's disaster declaration, while analysts say tax cuts often reach pumps slowly and retailers may not pass through the full savings.
The tradeoff is fiscal: Indiana's continuing tax holidays could cost $1.1 billion by Dec. 4, and Utah's 15% gas-tax cut saves only about 6 cents a gallon while reducing revenue.