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PRICE AT THE PUMP: Are gas tax holiday savings being passed along to motorists?

A new report indicates that gas tax holiday savings have not been passed along the consumers.

Instead, most of the savings have been absorbed by middlemen and retailers.

News10NBC reported that following investigation, the price of gas consumers pay at the pump across the region isn’t quite falling as quickly as wholesale gas.


What is happening? How is it happening?

It’s a little complex because of timing, and the way retailers pay for gas. Specifically the timing of delivery, and how that often lags behind the price people are seeing in the news.

A University of Pennsylvania study found that when it comes to gas tax holidays – the savings are short-term. In New York, the gas tax holiday runs a total of six months.


RELATED: Gas stations are breaking the law if they don’t pass savings along to customers


The study found that middlemen and retailers absorbed the savings, leaving consumers with little benefit.


What does this look like in practice?

Gas prices have been dropping more slowly than they have across the rest of the U.S. in our region. In fact, the Rochester-area has a price per gallon more than 27 cents higher than the national average.


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The state says it’s watching. They’ve also encouraged consumers to pass along any information that shows gas stations violating the intent of the gas tax holiday.

However, with gas prices declining to some degree across the region- it would require consumers to do a lot of homework along the way.

What are you seeing in your community? Higher or lower prices?



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