Gas prices remain near record highs this morning. Some states are taking action to bring them down.
The average price of a gallon of gas, nationwide, sits at $4.25, just 8 cents below the all-time record set on March 11. Global oil prices rose this morning as European Union governments debated matching America’s move to ban Russian oil imports in response to the war in Ukraine.
Gas prices tend to rise as fast as oil prices, then come down much slower.
Governments Have Limited Tools
The federal government has limited ability to drive oil prices down. The White House authorized the release of 30 million gallons from America’s strategic petroleum reserve early in the crisis. But the reserve holds barely two months’ supply and is needed for strategic reasons.
Related: How Much Do Rising Gas Prices Cost the Average Driver?
Governments do, however, have one lever they could use to lower the price at the pump. A few states have begun to use it.
Georgia, Maryland Act First
On Friday, both Maryland and Georgia passed legislation pausing state gas taxes.
Maryland’s move will last 30 days and save drivers about 35 cents per gallon. Georgia’s pause will last through May and cut prices by about 29 cents per gallon.
California lawmakers rejected a push to pause that state’s gas tax but have begun debate on a plan that would give drivers a gas tax rebate of up to $400.
In most states, gas taxes fund road repair. A long-term pause in gas taxes could be counterproductive if it leads to more gas-burning gridlock.
Related: How to Get Better Fuel Economy from Your Vehicle
The federal government charges its own gas tax, which adds 18.4 cents to the cost of each gallon. Several governors have written to Congress asking for a pause in the federal gas tax as well.
