Ohio drivers are getting a temporary break at the pump.
Gov. Mike DeWine signed legislation Thursday that suspends Ohio’s state gas and diesel taxes for 90 days, meaning the state’s 38.5-cent-per-gallon gasoline tax and 47-cent-per-gallon diesel tax are temporarily off the books. The suspension took effect immediately.
The measure is expected to save Ohio drivers and businesses an estimated $725 million during the three-month suspension. The state will use money from its General Revenue Fund to make up for transportation funding that would normally come from the fuel tax.
So, When Will Gas Actually Get Cheaper?
There is a bit of a catch here, and it involves the gas that’s already sitting in tanks beneath your local gas station.
Gas stations pay the fuel tax when they purchase their gasoline and diesel, so some of the fuel currently being sold was taxed before the suspension took effect. That means you shouldn’t necessarily expect to see the full 38.5-cent reduction the next time you pull into a station.
As stations purchase new, untaxed fuel, the savings should begin working their way into pump prices. Exactly how much drivers save will depend on the price of gas, the station, and how quickly each location cycles through its existing fuel supply.
And despite the name “gas tax holiday,” this applies to diesel, too. That’s particularly significant for farmers, truckers and other businesses that use a lot of diesel fuel.
The suspension comes as gas and diesel prices have climbed sharply, putting more pressure on household and business budgets.
There’s also a pretty obvious political backdrop. Democratic gubernatorial candidate Dr. Amy Acton called for a gas tax suspension before Republican candidate Vivek Ramaswamy announced a similar proposal. Ramaswamy, House Speaker Matt Huffman and Senate President Rob McColley then pushed the proposal through the legislature in a matter of days.
The timing has drawn criticism from some Democrats, who questioned why lawmakers returned for an emergency session shortly before the November election after previously canceling planned sessions. Other lawmakers, including Democrats who ultimately voted for the measure, said the temporary savings were worth supporting. Fifteen House Democrats voted in favor of the legislation.
Ohio drivers now have a 90-day window in which the state won’t collect its usual fuel tax.
So if you’ve been watching the price on the pump lately and wondering when it might get a little easier on the wallet, you should start seeing some temporary effects as stations work through their existing fuel supplies.
