Gas prices, which had already risen during the pandemic, have risen to new highs in recent weeks, in part because the war in Ukraine has led to greater instability in the energy market. The average cost of gas in the United States reached a record high on March 11 at $ 4.33 per gallon, according to AAA. Although that number has since dropped to an average of $ 4.24 per gallon, it is still 18 percent higher than it was last month and 48 percent higher than it was a year ago. Some states use budget surpluses from federal pandemic aid and increased tax revenue to cover the cost of suspending gas taxes for the coming weeks or months. Others are also considering stopping public transport fares. On March 18, Maryland Governor Larry Hogan announced that the state would suspend a tax of 36.1 cents per gallon on gasoline and a slightly higher tax on diesel fuel for the next 30 days, a measure that would cost the state 100 millions of dollars. “As we continue to stand in solidarity with Russian aggression in Ukraine and as Marylanders face the impact of rising inflation, with the average price of gas rising rapidly, this bipartisan action will provide some relief to the pump.” Mr. Hogan said as he signed the bill. The same day, Gov. Brian Kemp of Georgia signed a bill suspending the state gas tax until May 31. On March 24, Connecticut Gov. Ned Lamont announced that his state would temporarily suspend the excise duty of 25 cents per gallon – as well as the fare required to get on a public bus – from April 1 to June 30. Officials in other states are considering similar measures. In Ohio, where gas prices have risen 21 percent in the past month, Republican lawmakers are considering cutting the gas tax, which would cost up to $ 4 billion over the next five years. UPDATED March 27, 2022, 7:31 p.m. ET In West Virginia, a group of Democrats is calling on the governor to suspend gas prices for next month. And in California, Governor Gavin Newsom proposed an $ 11 billion aid package that would cut the state’s gas tax and provide free public transportation to residents. The average price of gas in California is $ 5.91, one of the highest in the country, compared to $ 4.82 a month ago, according to AAA. Mr Newsom said the state had to respond to the price hikes, which it said stemmed from the actions of Russian President Vladimir Putin. “We are taking immediate steps to bring money directly into the pockets of Californians facing higher gas prices as a direct result of Putin’s invasion of Ukraine,” Newson told a news release. But while many officials have passed such legislation, some experts say a temporary relief from state gas taxes is a ill-conceived solution that will only hurt Americans in the long run. Relief could provide a break for drivers and help reduce shipping costs for food, but the moves do not concern other people or problems affected by inflation, they argue. “This focuses mainly on drivers and therefore does not provide wider relief from all the inflation-induced price increases,” said Jared Walczak, vice president of public works at the Center for State Tax Policy, part of the nonprofit Tax Foundation. . Drivers could be shocked by stickers as soon as these temporary cuts end and prices return to normal, he added. “While it will provide some relief to the pump, it is ultimately a fairly technical way of providing relief at a time when consumers are facing higher prices at all levels,” said Mr Walczak.
