States Hesitant to Suspend Gas Taxes Amid Rising Fuel Prices Due to Iran Conflict
As the conflict with Iran continues to drive up fuel prices, most U.S. states are reluctant to suspend their gas and diesel taxes. The average state gas tax is 32.6 cents per gallon, and the national average gas price recently reached $4.11 per gallon. Despite the financial strain on consumers, only a few states, such as Georgia, Indiana, and Utah, have temporarily reduced or suspended their gas taxes. Georgia's suspension, signed by Governor Brian Kemp, is expected to save drivers nearly $400 million over 60 days. However, tax policy experts argue that suspending gas taxes is not an effective long-term solution and could negatively impact road maintenance and infrastructure funding.