- The average cost of gas nationwide is $4.32 per gallon, according to GasBuddy.
- Some Senate Democrats are pushing for a suspension of the federal gas tax of 18.4 cents per gallon until January.
- A number of governors and state lawmakers are publicly supporting gas tax holidays in their state.
As gasoline prices surge in the wake of Russia's invasion of Ukraine, some lawmakers are pushing for a suspension of gas taxes.
Nationwide, a gallon of regular gas cost an average of $4.32 per gallon on Monday, according to GasBuddy data compiled from more than 11 million individual price reports covering over 150,000 gas stations. In some parts of the country, like in California, gas prices are well over $5 per gallon.
The nationwide average is an increase of 83.6 cents from a month ago and $1.47 per gallon higher than gas prices were a year ago, according to GasBuddy. Gas is taxed at a federal level, which amounts to 18.4 cent per gallon, as well as at a state level, which varies by state.
Senate Democrats are pushing Congress to suspend the federal gas tax until January.
Meanwhile, governors all over the country are trying to get rid of, or reduce, state taxes of fuel, which could offer Americans even more relief at the pump. Maryland Governor Larry Hogan for example, is moving to pass a 30-day gas tax holiday, which could be enacted this week. That would save residents about 36 cents per gallon.
Here's what each state is proposing and what's being proposed in D.C.
The average state tax on gas is about 26.16 cents per gallon, according to the American Petroleum Institute. Depending on where you live, the state tax on gas prices vary widely. Pennsylvania, which currently has as the highest gas tax, sits at more than 57.6 cents per gallon. The lowest gas tax is in Alaska, where the tax rate sits at around 8 cents per gallon, according to the Federation of Tax Administrators.
Here's what governors are lawmakers across the country are considering, as on Monday, March 14.
- Alaska: Governor Mike Dunleavy is asking state legislators to suspend state gas tax until until June 30, 2023.
- California: Governor Gavin Newsom is proposing delaying an upcoming gas tax increase, or creating a gas tax rebate.
- Colorado: Governor Jared Polis has proposed delaying a gas 2 cent tax increase set to take effect in July, he told NPR on March 9.
- Florida: A budget bill is being considered that would create 1-month fuel tax holiday in October. Governor Ron DeSantis earlier proposed a 5-month suspension, according to the Tax Foundation.
- Georgia: Governor Brian Kemp supports a bill that would suspend state gas tax until the end of May.
- Illinois: Governor J.B. Pritzker wants to delay the annual gas tax increase. Proposals from other state legislators would rather cap the state's gas tax at 18 cents per gallon.
- Maine: A bill has been introduced in the legislature to suspend state gas tax until the end of the year.
- Minnesota: A group of lawmakers are proposing a gas tax holiday from Memorial Day to Labor Day.
- New Jersey: A bill introduced in the state legislature would provide a $500 tax rebate to help cover the higher cost of gas and other items.
- New York: Multiple bills are being considered by the state legislature that would suspend the gas tax for different time periods. Another proposal before the state legislature would cap the state gas tax at 25 cents per gallon.
- Ohio: A bill before the state legislature would reduce the gas tax for five years.
- Pennsylvania: Bills to temporarily cut the gas tax or suspend it through the end of the year have been introduced in the state legislature.
On a federal level, a measure sponsored by Senators Mark Kelly (D-AZ) and Maggie Hassan (D-NH) would suspend the federal gas tax of 18.4 cents per gallon until January.
Pennsylvania Governor Tom Wolf was one of the six Democratic governors who wrote a letter to congressional leaders on March 8 calling for a suspension of the federal gas tax. "At a time when people are directly impacted by rising prices on everyday goods, a federal gas tax holiday is a tool in the toolbox to reduce costs for Americans, and we urge you to give every consideration to this proposed legislation," they wrote.
Gas prices could rise more, says Patrick De Haan, head of petroleum analysis at GasBuddy. "The situation remains fluid, and escalations remain very possible, if not likely. For now, a $4.50 per gallon national average is off the table, but it certainly could be a future possibility as long as there is conflict between Russia and Ukraine."
More from Grow:
- Charmin toilet paper, Keebler cookies, and other items are experiencing 'shrinkflation': Here's how to shop smart
- I saved $150,000 in 5 years: Here are my top tips for growing wealth without feeling deprived
- 50% of working Americans say they live paycheck to paycheck, including 31% of those making $100,000 or more