Gas Taxes May Be Fixed as Prices Close to $4 a Gallon
National average gas prices are now within cents of the critical $4-per-gallon limit, which many elected officials would like to avoid in the midterm election year.
So what are they going to do about it?
As of Tuesday, it looks like the national average will cross the $4 mark “in the next 24 hours,” Patrick de Haan, GasBuddy’s head of fuel analysis, wrote in an X post.
The national average stood at $3.98 on Tuesday, according to GasBuddy, and AAA also put it at $3.98. Based on AAA’s figures, that’s an increase of more than $1 from last month.
With drivers suddenly paying nearly 35% more for gas just weeks into the Iran war, some federal and state lawmakers are pushing legislation to end the gas tax. All states levy a gas tax, which ranges from 9 cents to about 71 cents – the cost of accounting – and is usually paid by drivers on every gallon of gas. The state gas tax is 18.4 cents per gallon.
Countries consider gas tax holidays amid Iran war
Georgia Governor Brian Kemp, a Republican, signed a measure Friday to freeze the state’s gas tax for 60 days after lawmakers sent it to his desk with bipartisan support. The move is estimated to save drivers about 33 to 34 cents per liter. So far, Georgia is the only state to approve a gas tax holiday during this price hike.
Other proposals have met with opposition.
In Maryland, Republican legislative leaders have supported a 30-day gas tax holiday; however, Gov. Wes Moore, a potential Democratic presidential candidate in 2028, is absent. In a statement sent to FOX Baltimore, the spokesperson said it would “punch a $100 million hole” in the transportation budget, adding that “if Maryland Republicans are serious about cutting costs, they should pick up the phone and call Donald Trump and tell him to end this pointless war.”
Connecticut’s key officials including Gov. Ned Lamont, a Democrat, endorsed the gas tax holiday. But the report last week since Connecticut Mirror raised questions about the seriousness of the effort, with no concrete plan available and few signs of progress in recent days.
Gas prices can be a political liability for elected officials in both parties. Republican strategists are “secretly concerned that higher gas prices will undermine their economic message in the midterm,” according to the report. New York Times.
Meanwhile, California’s high fuel costs are seen as one of Democratic Gov. Gavin Newsom’s biggest risks ahead of a possible 2028 election.
A bill to freeze California’s gas tax, introduced earlier this month, quickly failed in a state senate committee last week. California has the nation’s highest gas taxes with fees of 70.9 cents per gallon, according to the Energy Information Administration. The average cost of a gallon of gas is $5.82 in the Golden State, according to AAA.
Republican Gov. Ron DeSantis, R-Fla., recently poured cold water on the idea of ending Florida’s 25-cent per gallon tax, saying at a press conference that “the government’s ability to influence gasoline prices is very limited.” He added: “My answer is simply to reduce costs internationally.”
Instead of advancing gas tax relief, the Trump administration has taken several other measures aimed at reducing the cost of crude oil, which accounts for more than 50% of what American drivers pay for gas.
The Trump administration is releasing 172 million barrels of oil from strategic reserves over a 120-day period in an orderly release from many other nations. The White House also eased sanctions on Russian oil and decided to temporarily suspend the Jones Act, a law that requires ships transporting cargo between US ports to be American-built and flagged ships.
Experts told The Hill that these actions will save customers some money “on the edge,” or the only way to lower gas costs is to turn the power back on.
Will Congress end the federal gas tax?
Over in Congress, Sens. Mark Kelly, D-Ariz., and Sen. Richard Blumenthal, D-Conn., co-sponsored a bill that would freeze the state’s gas tax on Oct. 1. The “Electricity Rate Relief Act of 2026” was referred to the finance committee. The House version introduced by Rep. Chris Pappas, DN.H., on March 12 was referred to the Ways and Means committee.
“As Granite Staters continue to face higher food, housing and health care costs as a result of this administration, the last thing they need is paying even higher prices at the gas pump because of Donald Trump’s war on Iran,” Pappas said in a statement.
Given the minority of Democrats in both chambers of Congress, the bills seem unlikely to win power. They don’t have bipartisan support so far.
GOP leaders like House Speaker Mike Johnson, R-La., say they hope the Strait of Hormuz will reopen soon, and fuel prices will drop soon. About 20% of the world’s oil supply is currently disrupted by the crisis, leading to continued declines in oil supply and price increases.
On Monday, the Brent crude oil benchmark fell 10% to around $100 per barrel following President Donald Trump’s latest allegations that the US was in talks with Iran about ending the war, which Iran denied.
GasBuddy’s De Haan said at X a sharp drop in oil prices “could lead to the national average starting to drop towards the end of the week if there is confidence.” [the situation] better.”
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