Skip to content
Home » News » Gas tax holiday: State lawmakers backing extension into 2023, as fuel prices drop slightly

Gas tax holiday: State lawmakers backing extension into 2023, as fuel prices drop slightly

  • / Updated
  • Staff Report 

Some lawmakers in New York want to see the gas tax holiday extended.

The gasoline and diesel fuel tax ‘holiday’ will sunset January 1st, 2023. However, fuel prices in general are expected to be higher-than-average, and much costlier to motorists this winter.

Senate bill could increase gasoline tax in New York by 55 cents per gallon

Not only will it cost more to get around, but also heat homes and keep the lights on.

Lawmakers are proposing that the gas tax holiday, which was enacted earlier this year to cope with higher gas prices be extended into 2023 to help New Yorkers deal with higher prices across the board.

Inflation hasn’t only hit fuel prices. The cost of goods at the store, like food and clothing, are also significantly higher.

Finger Lakes Partners (Billboard)

How much are motorists saving?

According to the state, suspending the gas tax in New York has saved motorists around 19 cents per gallon.

“The latest inflation numbers confirm what everyone already knew: prices are still rising and the financial pain isn’t going away,” Assembly Minority Leader Will Barclay, a Republican, said of extending the gas tax holiday. “The situation has only gotten worse, and it’s clear this will be a major priority heading into 2023.”

The state is expected to lose a total of $600 million in revenue from the gas tax holiday in 2022.

How much does gas cost now?

The average price of gas is dropping slightly.

According to AAA, the average price for a gallon of gas is between $3.59 and $3.71 in the Finger Lakes and Central New York.

Finger Lakes Partners (Billboard)

It represents an average drop of 2 cents in the three areas analyzed by AAA.

The national average for a gallon of gasoline is down 10 cents from last week. The updated prices across the region fall in line with the state average.