Gas prices have reached multi-year highs as anyone who drives or uses a car can attest to. Along with high inflation, soaring gas prices are now part of the daily zeitgeist.
Energy and basic living expenses (like food and shelter), make up 30% to 60% of most households expenditures, so clearly this is a hot button topic. Which is why government leaders have to respond, or else face some pretty angry constituents.
And respond they have. From California to New Jersey and from Maine to Florida, state governors and leaders are now putting forward or have instituted direct gas relief stimulus payments, tax breaks/refunds or gas tax exemptions/holidays to help their state’s residents and business cope with rising gas prices.
Below is a list of what is being proposed, implemented or available now in various states.
It looks like gas tax holidays are the most popular initial option, with nearly 18 states temporarily pausing or lowering gas taxes as a way to combat soaring gas prices at the pump. You can see the table below for more details.
Most of the current actions are being done on a state-by-state basis where the average state gas tax is about 39 cents per gallon.
Gas Rebate Act of 2022
No federal exemptions have yet been passed for gas taxes, which would be worth around 18 cents per gallon (or 24 cents for diesel).
Several law makers are pushing for the Biden administration to do this and three Congressional Democrat representatives, have introduced the Gas Rebate Act of 2022 which would send a rebate (or a gas stimulus check) to households worth $100 a month for each adult and $100 to each qualified dependent through the end of the year.
The rebate, however, would only be sent to households living in areas where the average price of the gallon is above $4.00.
While the passage of the above stimulus program is far from certain, as gas prices rise I expect direct stimulus payments, as California is proposing, to come more into the discussion given the popularity of past stimulus check payments.
Feel free to leave a comment below if I have missed any and I will continue updating this table regularly.
|State||Gas Prices Relief Benefit||Status|
|California||– Up to $800 refund for gas taxes or $400 per registered vehicle |
– 3 months of free public transportation
|Connecticut||Gas tax suspension (25c p/gallon benefit) from April until June 2022||Active|
|Florida||Cut or lower gas tax (27c p/gallon benefit) from October||Proposed|
|Georgia||Temporarily suspended state gas taxes (29.1c p/gallon benefit) |
through May 31st
|Maine||Cut or lower gas taxes||Proposed|
|Maryland||Suspended state gas taxes (36.1c p/gallon benefit) for 30 days||Active|
|Massachusetts||Cut or lower gas taxes||Proposed|
|Michigan||Temporarily lower state gas taxes (27c p/gallon benefit)||Proposed|
|New Hampshire||Cut or Lower gas taxes||Proposed|
|New Jersey||– Gas state tax holiday for 60 days (27.9c p/gallon benefit) |
– $500 tax credit for lower income families.
|New York||Cut or lower gas taxes||Proposed|
|Virginia||Tax holiday (26.2c p/gallon benefit) to run from May through July||Proposed|