After the strait of Hormuz was first closed in February 2026, the prices seen by consumers and businesses for gas and diesel rose quickly. Republican and Democratic governors of several states have reacted by either temporarily reducing or suspending fuel taxes for everyone; or have targeted their relief efforts to diesel by temporarily not enforcing laws concerning the use of dyed diesel by vehicles driven on the highway. However, some state leaders across both aisles are more reluctant to make such moves.
States That Have Suspended Gas Taxes in 2026
Georgia was the first state to suspend fuel taxes when Republican Gov. Brian Kemp signed HB 1199/Act 375 on March 20, 2026; Governor Kemp went on to issue follow up executive orders extending the suspension multiple times, most recently on October 24. Other states that either passed legislation or saw similar executive orders that temporarily suspend or reduce gas taxes and/or suspend enforcement of dyed diesel laws include Alabama, Arkansas, Indiana, Iowa, Kentucky, Louisiana, Maryland, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Oklahoma, Texas, Utah and West Virginia.
Concern About Long Term Consequences
Yet, not all state leaders are suspending fuel taxes though it is a bipartisan and popular way to provide relief at the pump. One reason is that the states do not have the same amount of cash reserves as they had at the end of the pandemic. Suspending gas taxes could create large holes in stretched transportation budgets, a concern voiced by Maryland lawmakers in March who previously passed a suspension back when prices surged in 2022, though Democratic Gov. Wes Moore did issue an executive order in early October allowing the state to suspend enforcement of dyed diesel laws. Vermont Republican Gov. Phil Scott briefly considered suspending the state’s gas tax in May but deemed the potential consequences too great to justify the move. Florida Republican Gov. Ron Desantis, who had championed suspending in the state’s gas tax in 2022, voiced skepticism of whether worthwhile savings would be passed on to consumers relative to what the state would be ceding in revenue.
Concentrating Efforts Elsewhere
Another reason for gas taxes not being suspended in some states is the sentiment it would not make much of a difference. For example, Alaska has the lowest rate at roughly nine cents. Republican Gov. Mike Dunleavy did hope to suspend the tax amid the price surge in 2022, but his proposed legislation failed to pass. Governor Dunleavy pivoted his efforts in 2026 to pressing for tax breaks for a planned natural gas pipeline, which he believes would be worth “billions of dollars in state and local tax revenue.” Hawaii Democratic Gov. Josh Green did briefly contemplate suspending the tax for the summer of 2026, however, he expressed doubts that it would be “a game changer for people” and would rather maintain other recently passed income tax breaks for the middle class. While Democratic Massachusetts Gov. Maura Healey wanted to include a two-month gas tax holiday in the latest budget, this provision was removed by the House Ways & Means Committee, with committee chair Rep. Aaron Michlewitz, D-Boston, stating the real culprit for the high prices being the war in Iran, which would need to be ended to help with the overall affordability crisis.
FOCUS will continue to monitor these issues as they develop.
by Alexis Sly 10/26/31
