ASHEVILLE - With gas prices soaring and Republicans facing stiff political headwinds ahead of the Nov. 3 election, North Carolina lawmakers are offering motorists a temporary reprieve at the pump — but Democrats say the sudden generosity has more to do with saving Republican seats than saving taxpayers money.
“The Republicans have been in control for 16 years, and now a month before the election they wake up to the fact that North Carolina has become less affordable for most people. The timing seems suspect,” said Rep. Brian Turner, a Democrat who represents Asheville in the NC House. “And, there was no acknowledgement of what’s driving these cost increases — including tariffs and the war in Iran. To ignore the root causes is a disservice to the people of this
state.”
In the Asheville area, as of Oct. 8 prices for a gallon of diesel were hovering around $5.60, with regular unleaded gas between $3.83 and $3.97, according to gasbuddy.com. In December 2024, before President Donald Trump took office, regular unleaded averaged $2.88. In February, before the United States began attacking Iran, prices were around $3.00.
“Obviously gas has been an issue in the past few weeks and months, and we thought it was a good idea to do it,” said Sen. Kevin Corbin (R-Macon), who represents the seven westernmost counties in the state. “It’s going to save 41 cents a gallon, which is not a tremendous amount, but it’s something.”
Reporting by the Citizen Times on state and federal campaigns over the past month shows that affordability — gas, groceries, housing and health care — remains a top issue with voters.
Democratic Gov. Josh Stein signed the bill Oct. 9 at Hickory Nut Gap Farms in Fairview — owned by Democratic congressional candidate Jamie Ager, who according to observers is locked in a tight race with Republican state Rep. Jennifer Balkcom in North Carolina’s 11th Congressional District.
Ager’s brother, Eric, is a Democrat who represents parts of Buncombe County in the state House and had harsh words for the Republicans who introduced the bill.
“I think this shows just how desperate Republicans are,” Eric Ager told the Citizen Times Oct. 8. “Hopefully it will help people and I’m supportive of anything that helps people, but I wish we could have used this opportunity to broaden the discussion on affordability, like utility rates and food prices. Republicans created rules that left that out of bounds for discussion.”
Upon signing the bill, Stein said it would "deliver relief to North Carolina families — people who need real solutions, now" and then went on to recount other affordability issues related to groceries, utilities and health care. Stein, however, ultimately kept the focus on why he thinks gas prices have steadily risen this year.
"Thanks to the Trump administration's disastrous war of choice against Iran, gas prices are sky high," he said.
Corbin dismissed Democrats’ claims that the move is an election ploy designed to sway voters.
“There’s an election every two years, so it’s always going to be before an election or after election. I don’t think people are going to vote one way or other because we suspended the gas tax,” Corbin said. “Either you’re for or you’re not. They (Democrats) all voted to do it as well, so I guess they thought it was a good idea too.”
The tax suspension will take effect the day after the bill becomes law and carries an estimated $362.3 million price tag, however lawmakers have included a provision to replace the lost revenue using money from the state's Stabilization and Inflation Reserve, an emergency fund established in 2022.
Under the legislation, the State Controller would transfer that money monthly to the Highway Fund, Highway Trust Fund and four other accounts that ordinarily receive motor fuels tax revenue. The transfers are intended to prevent disruptions to road construction, maintenance and other programs funded by the tax.
As of Oct. 2, the reserve held approximately $1.34 billion, according to the latest weekly report from the Office of the State Controller published Oct. 5. The proposed $362.3 million gas tax holiday would consume approximately 27% of that balance, leaving about $981.1 million, assuming no other transfers.
The bill also requires fuel prices to reflect savings from the suspended tax, although retailers would not have to immediately reduce prices on gasoline they purchased before the suspension took effect. It may be several days before prices begin to drop.
Additional provisions temporarily ease restrictions on the highway use of dyed diesel fuel for agricultural purposes, including qualifying farmers, commercial loggers and other specified users.
The tax holiday is slated to expire Nov. 30, nearly four weeks after voters decide the political fate of the lawmakers who approved it.
House Speaker Destin Hall issued a statement Oct. 9, saying that the state's "years of responsible budgeting have put North Carolina in a position to provide meaningful relief when families need it most," and that temporarily suspending the tax is how Republicans "are working to make our state more affordable for everyone."
Cory Vaillancourt is the Helene Recovery/Investigations Reporter for the Asheville Citizen Times. Find him on X at @The_CoryV or on Signal, via email at cvaillancourt@citizentimes.com or at 912-508-5640.
This article originally appeared on Asheville Citizen Times: North Carolina suspends gas tax. How much will you save?
