Updated
Updated · The Washington Post · Sep 26
Ohio, Massachusetts Push Gas Tax Holidays as Diesel Hits Record $6.53
Updated
Updated · The Washington Post · Sep 26

Ohio, Massachusetts Push Gas Tax Holidays as Diesel Hits Record $6.53

3 articles · Updated · The Washington Post · Sep 26

Summary

  • Ohio lawmakers are expected next week to vote on a pre-election gas tax holiday, while Massachusetts Gov. Maura Healey has proposed a two-month suspension as both parties scramble to answer voter anger over fuel costs.
  • AAA said diesel hit a record $6.53 this week and regular gasoline averaged $4.49 a gallon Friday, up from $2.98 on Feb. 28 after the U.S.-Israel attack on Iran and later supply disruptions.
  • Massachusetts estimates its 24-cent-per-gallon tax pause would cost $120 million, while Ohio says a 90-day suspension of its 38.5-cent gas tax and 47-cent diesel tax would erase $678 million to $750 million.
  • Critics say the holidays would drain road and bridge funding while offering limited relief, though Penn Wharton estimated drivers would capture 72% of savings and Indiana's suspension has left pump prices about 45 cents below Ohio's.
  • Washington has shown how hard broader action is: Trump backed a federal holiday, but Congress has not advanced one and House Republicans failed last week to unite behind a plan.

Insights

If states drain reserve funds to pause gas taxes today, who will ultimately foot the bill for crumbling infrastructure tomorrow?
How will states guarantee that fuel retailers pass these tax savings to drivers instead of quietly boosting their own profits?
Could temporary gas tax cuts actually backfire by driving up fuel demand right as severe hurricanes threaten major refineries?