Gas prices continue to rise nationwide despite proposed or enacted legislation at the state level aimed to bring relief to Americans at the pump. As of Wednesday, the AAA national average for a gallon of regular gasoline was $4.74, while the average price for a gallon of diesel sat at $6.52. The prices have held steady from their Tuesday level but have risen by 11 cents and 21 cents respectively since last week, and by 38 cents and nearly 90 cents, respectively, over the past month.
The surging prices come at a volatile time for America’s political climate with less than 50 days until midterm elections, which will determine whether Republicans or Democrats control the House and Senate. The elections will have a big influence on the last two years of President Donald Trump’s presidency, and gas prices are shaping up as a major issue that voters are thinking about before they head to the polls. Several actions have been taken at the state level to lower gas prices.
As of September 23, here’s where those measures stood: Several states have taken measures to lower gas prices, such as suspending taxes and or approving rate freezes. "Most of the savings from gas tax holidays are passed on to consumers," Adam Hoffer, director of excise tax policy at the Tax Foundation, told Newsweek. "We would expect around 80 or 90 percent of the rate cut to manifest in the form of lower prices for drivers, with the rest of the savings going to suppliers and producers." In Georgia, Governor Brian Kemp issued a state of emergency and an executive order that suspended the motor fuel excise tax from March 20 through June 2.
The suspension dropped prices by around 33 cents per gallon, but it has since expired. A public act signed on June 16 in Illinois suspended a scheduled Consumer Price Index adjustment set to take effect July 1. This action was equivalent to a rate freeze on the motor fuel tax rate.
It remains in effect through December 31. Governor Mike Braun in Indiana has suspended both the gas excise tax and gas usage tax, which saves almost 60 cents at the pump per gallon. The current measure is set to remain in place through October 5, although Braun has extended it several times in the past.
Kentucky Governor Andy Beshear has frozen the gas tax expected to take effect in January of next year and declared a state of emergency that reduces the price of gas by 10 cents per gallon in Kentucky. Utah reduced its state gas tax by 15 percent, which will remain in effect through December 31. Several states are in the proposal process of gas relief measures.
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