Ohio drivers will soon see lower pricesat the pump after Gov. Mike DeWine signed a bill Wednesday suspending the state's gasoline and diesel taxes for 90 days.
The measure temporarily eliminates Ohio's 38.5-cent-per-gallon gas tax and 47-cent-per-gallon diesel tax, with lawmakers using more than $725 million in state surplus funds to replace the lost revenue and keep road projects funded.
The tax holiday comes as fuel prices surge across the country, including Ohio. On Sept. 30, the state's average gas price reached $4.24 per gallon, while diesel averaged $6.68 per gallon, according to AAA.
So, when does Ohio's gas tax holiday begin? And how much will you save at the pump? Here's what to know.
When does Ohio's gas tax holiday begin?
The change goes into effect on Sunday, Oct. 4.
The gas
tax holiday would save the average driver about $80 around the elections and the holidays, though estimates vary.
Will Ohioans actually feel savings at the pump?
While it might not feel like huge savings, the Ohio gas tax holiday will likely bring some relief to Ohioans pockets.
Gas stations that don't pass savings on to customers could face penalties from the Ohio Department of Taxation and the Ohio Attorney General. Though, Tony Ehler with the Ohio Council of Retail Merchants warned there's no way to measure that, which could lead to witch hunts against gas stations with higher prices.
Meanwhile, Democrats were skeptical that the full $725 million in relief would reach Ohioans' pockets. They estimated Ohioans would save about $3 per week over the three-month suspension.
"At the end of the day, I am glad we're doing something to help people," said Rep. Bride Rose Sweeney, D-Westlake. "If the options are nothing or $3 a week, that's all this body can do, then yes, I will vote for it, but I don't think anybody should be proud of that."
Sen. Bill Blessing, R-Colerain Township, who voted against the bill, said the suspension won't solve Ohio's high gas problems. "In short, the gas tax holiday is not good economics irrespective of its broad, bipartisan appeal. It's attempting to fight a supply crunch with what is effectively a demand subsidy," Blessing said.
Could the gas tax holiday be extended?
Theoretically, yes.
Ohio could extend the gas tax suspension beyond three months if needed, but any extension would be decided later, said Senate President Rob McColley, R-Napoleon, the running mate of Vivek Ramaswamy, the Republican nominee for Gov. of Ohio.
Why are gas prices so high?
Gas prices have spiked because of the Iran War, which led to disruptions at a key oil choke point, and other conflicts abroad. Ohio's average gas price was $4.24 per gallon Sept. 30, while diesel averaged $6.68, a significant increase from the year before, according to AAA.
Several states, including neighboring Indiana and Kentucky, have paused collecting gas taxes amid the high prices at the pump.
Ohio lawmakers' changes will not affect the 18.4 cents per gallon the federal government charges on gas or the 24.4 cents per gallon it charges on diesel. Ohio will continue to charge one-hundredth of one cent per gallon for accounting purposes and to avoid issues with neighboring states.
This article originally appeared on Cincinnati Enquirer: Ohio OKs gas tax holiday, here's how much you'll save at the pump
