COLUMBUS, United States – States across the United States are suspending or reducing fuel taxes and temporarily relaxing fuel and transportation regulations as gasoline and diesel prices surge, putting energy costs at the center of political debate ahead of the November midterm elections.
The measures vary widely. Some states have suspended gasoline or diesel taxes outright, while others have delayed scheduled increases or provided narrower relief to farmers, truckers and other fuel-intensive industries. Several governors have also temporarily allowed the use of tax-exempt dyed diesel in highway vehicles or changed transportation rules to reduce costs.
The average U.S. price for regular gasoline reached $4.43 a gallon on Sept. 30, according to AAA data cited by The Associated Press, about 50% higher than when the war involving Iran began. Diesel averaged $6.41 a gallon, only slightly below a record reached the previous week.
Ohio adopts 90-day fuel tax holiday
Ohio became the latest state to act Wednesday, when lawmakers approved a 90-day suspension of the state’s gasoline and diesel taxes.
The legislation would suspend Ohio’s 38.5-cent-per-gallon gasoline tax and 47-cent-per-gallon diesel tax through the end of 2026. Gov. Mike DeWine’s office said he planned to sign the measure. The state expects to use $725 million from its general fund to replace revenue normally used for roads and bridges.
The measure emerged during a closely watched Ohio governor’s race. Democratic candidate Amy Acton called for a gas-tax holiday before Republican candidate Vivek Ramaswamy announced his own proposal. The competing proposals became part of the campaign debate over how the state should respond to higher fuel costs.
The Ohio legislation therefore provides immediate tax relief at the same time that it creates a budgetary question over how transportation infrastructure will be financed while the tax is suspended.
Georgia and Indiana have extended fuel relief
Georgia was the first state to suspend its fuel taxes after energy prices began rising sharply in March. Gov. Brian Kemp subsequently extended and reinstated the suspension at different points.
Under an executive order issued Sept. 28, Georgia suspended collection of its motor-fuel excise tax from Sept. 29 through Oct. 29. The order also suspended certain state taxes on locomotive fuel and temporarily suspended state weight limits on commercial vehicles.
Indiana has repeatedly extended a fuel-tax exemption since the spring. The current measure was scheduled to remain in effect through Oct. 5.
Utah has reduced its fuel tax by 6 cents for six months, with the reduction scheduled to remain in effect through the end of the year. Illinois and Kentucky have taken narrower measures, including delaying scheduled fuel-tax increases.
These measures differ in duration and scope, meaning consumers in different states are receiving different forms and amounts of tax relief.
Governors turn to untaxed dyed diesel
A separate group of states has focused on diesel used by agricultural and other industries.
Alabama, Arkansas, Louisiana, Missouri, Nebraska, North Carolina, North Dakota, Oklahoma and Texas have taken steps to temporarily relax enforcement surrounding dyed diesel, according to an Associated Press review.
Dyed diesel is normally exempt from fuel taxes and is intended primarily for off-road uses such as farm equipment, logging machinery and irrigation equipment. Temporary state measures allow some of the fuel to be used in highway vehicles, reducing fuel costs for certain agricultural and transportation operations.
Nebraska also authorized highway-registered vehicles to use untaxed dyed diesel without state penalties and introduced provisions allowing refunds of certain diesel taxes associated with transportation of seasonal products and livestock. The state also eased weight restrictions for seasonal crop transportation.
Oklahoma paused enforcement of taxes, regulations and fines associated with red-dyed diesel for 120 days, while Alabama adopted a 120-day suspension of enforcement of restrictions on its use.
Texas targets freight and agriculture
Texas Gov. Greg Abbott declared a statewide emergency Sept. 28 in response to high fuel prices.
The order expanded use of dyed diesel, increased allowable weights for certain truck loads and suspended some federal diesel-emissions requirements. The measures are aimed particularly at agriculture and freight, sectors heavily dependent on diesel.
The Texas order did not suspend the state’s 20-cent-per-gallon fuel tax. Democratic lawmakers have called for a suspension, while other state political figures have advocated broader federal fuel-tax reductions.
AAA data cited by The Washington Post put the average Texas diesel price at $5.86 a gallon when Abbott issued the emergency order.
California relaxes fuel-blend restrictions
California has taken a different approach by changing rules governing the type of gasoline sold during the transition from summer to winter fuel.
The state normally maintains stricter summer-blend requirements in many areas through Oct. 31. Gov. Gavin Newsom ended the summer requirement early on Sept. 28, citing a state law requiring a review of fuel regulations when retail gasoline prices rise substantially.
The federal Environmental Protection Agency had already allowed the seasonal switch to cheaper winter-blended gasoline to begin earlier than usual. The National Association of Convenience Stores estimated the change could reduce fuel costs by as much as 15 cents per gallon.
The EPA has separately issued a series of temporary fuel waivers during 2026 to address fuel-supply disruptions, including waivers affecting gasoline volatility standards and certain diesel requirements.
Fuel-price relief does not guarantee an equal pump-price reduction
State tax holidays and regulatory changes do not necessarily translate immediately into equivalent savings at gas stations.
Fuel taxes are generally collected earlier in the supply chain, and retailers may still have inventories purchased under previous tax conditions. Wholesale fuel prices can also move independently of state tax changes.
Jeff Lenard of the National Association of Convenience Stores told AP that the effect of a gas-tax holiday can be more complicated than simply subtracting the tax from the retail price because fuel purchased under the previous tax structure may remain in a retailer’s inventory.
That means the size and timing of consumer savings can vary by market.
Rising fuel costs become an election issue
The measures are arriving as candidates and elected officials campaign for the November midterm elections.
Fuel prices are particularly visible to voters because gasoline costs are paid frequently and diesel prices affect trucking, agriculture and other transportation-dependent industries. The current measures have therefore become part of campaign debates in states including Ohio and Texas.
The political significance of individual measures varies by state. In Ohio, competing gubernatorial candidates proposed fuel-tax relief before the legislature acted. In Texas, the governor pursued regulatory measures while leaving the state fuel tax intact.
The measures also involve trade-offs. Suspending a fuel tax can provide temporary relief while reducing revenue available for transportation infrastructure, as Ohio’s decision demonstrates through its planned $725 million general-fund transfer.
Federal and state responses continue
The state actions are occurring alongside federal efforts to address fuel-market disruptions.
President Donald Trump said Sept. 30 that he was continuing to consider a possible diesel-export ban. He acknowledged that such a measure could have a negative effect on gasoline prices while potentially reducing diesel prices. The administration has also considered broader access to tax-exempt diesel and other measures intended to increase domestic fuel availability.
The administration has attributed the price pressures to disruptions involving energy production, refining and exports, including effects associated with conflicts involving Iran and Russia. Those explanations concern multiple supply disruptions rather than a single source of the price increase.
For states, the immediate response has increasingly centered on temporary measures: suspending taxes, delaying tax increases, changing fuel specifications, expanding use of tax-exempt diesel and easing transportation restrictions.
With the midterm elections approaching, those policies place fuel affordability directly into state-level political debates while leaving questions about their fiscal costs and longer-term effectiveness unresolved.
Reporting Credit: Georgia Department of Revenue; U.S. Environmental Protection Agency; state executive orders and official government records cited in the reporting.
