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April 6, 2026

Gas prices are high. But do the numbers support suspending state gas taxes?

  • Unless funds are shifted from elsewhere, suspending a gas tax often means less money for transportation projects, including some that may already have been budgeted.
    • By DAVID A. LIEB
    Associated Press

    With the average price of a gallon of gas topping $4 nationally, some federal and state officials have talked of temporarily reducing motor fuel taxes to provide relief to motorists.

    So far, Georgia and Utah are the only states to suspend all or part of their gas taxes as the war in Iran has pushed fuel prices higher. Others are considering it. But there are a variety of reasons that policymakers may not relax gas taxes, including concerns about government finances, doubts about the action's effectiveness and uncertainty about how long the war will last.


     
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