COLUMBUS, Ohio—(AVC News)–As Election Day draws near, reports say lawmakers in one-fifth of the states, such as Ohio, Georgia and Indiana, are suspending gas taxes or rolling back regulations on diesel fuel as voters grow increasingly frustrated with rising fuel costs amid the ongoing war with Iran.
On October 4th, Ohio paused their 38.5-cent-per-gallon gasoline tax and 47-cent-per-gallon diesel tax which, by some reports is costing the state over $250 million in revenue earmarked for statewide road repairs and construction.
The fuel tax suspension roll out some reports say have however, has produced mixed results at the pump. According to one report, a spot-check of 26 Northeast Ohio gas stations showed inconsistent compliance and pricing adjustments.
Since the tax break went into effect, reports say the Ohio Attorney Generals Office has received more than two dozen complaints of price gouging.
The Triple A reported that following the tax suspension’s start, Ohio’s average price for a gallon of unleaded gas dropped to around $3.87 to $3.88, down from roughly $4.20 the previous week. Meanwhile, diesel prices fell by approximately 30 cents per gallon with the fuel tax suspension.
At last check of the AAA Fuel Gauge Report; Ohio’s state-wide average price at the pump $3.98 for gasoline, $6.17 for diesel. Compaired to the national average for a gallon of unleaded gas was $4.33, while diesel was $6.31.
Reports point out that one reason for the variation of prices between stations, other than price fluctuations, is that stations pay fuel tax when then purchase the fuel from distributors. Not when they sell it. Thus, the tax free fuel reduction will not show up at the pumps until the station’s taxed supply is gone.
Diesel Fuel
Recently, President Trump issued an executive order to expand access to tax-free diesel fuel nationwide, following the lead of several governors who have taken the same step. This suspends the 24.4 cent federal highway tax through the end of the year.
That fuel, known as red-dyed diesel, is normally only allowed for off-highway agricultural, industrial and railroad use. However, some governors, North Dakota, Nebraska, Texas, Alabama and Indiana to name a few, have issued executive orders expanding it’s use, which is not taxed like regular diesel in a bid to help farmers and truckers with transportation costs.
Reports say that while the federal executive order defers the federal diesel tax for on-road use of dyed diesel, it does not automatically override state-level motor fuel law. Ohio still has in effect a ban on dyed diesel for road use.
The Ohio Farm Bureau has joined other Ohio agricultural organizations urging Gov. DeWine to temporarily suspend state restrictions and penalties on the use of red-dyed diesel for legitimate agricultural activities.
There has also been criticism of the expanded use of red dye diesel by some groups including those in the trucking industry and by the Energy Marketers of America.
President Trump also recently announced an agreement with Russia who will supply hundreds of thousands of tons on diesel fuel to the U.S. and Global markets. The agreement however also has become the target of bipartisan criticism in recent days, causing the president to downplay the deal saying “it is for the world, not a USA deal”.
Ohio’s fuel tax suspension runs through January 2, 2027.
