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New York gas tax holiday expires, but prices decline due to global economic slowdown

  • / Updated:
  • Staff Report 

New York’s gas tax holiday has ended. However, drivers may not immediately notice a change in gas prices across the Empire State.

The temporary suspension of the state’s 16-cent per gallon tax was initially implemented in June when gas prices had soared above $4 per gallon. A number of counties also halted their local gas sales taxes at the same time. The suspension was set to expire at the end of 2022, though Saratoga GOP Senator Jim Tedisco has called on Hochul to extend it due to current inflation and plans by the New York State Thruway Authority to raise tolls.

DiSanto Propane (Billboard)

Hochul has argued that the taxes need to be reinstated in order to fund highway maintenance and improvements.

While gas prices have dropped significantly since the summer, largely due to a slowdown in the global economy and an increase in diesel fuel production, they are still subject to fluctuations due to a range of factors such as sanctions on Russia, COVID-19 in China, and supply and demand.

According to the federal Energy Information Administration, the average retail price for all grades of gasoline nationally was $3.32 in December, down from a high of $4.69 in July. On Tuesday, AAA listed the national average for a regular-grade gallon of gas at $3.23, with New York’s average at approximately $3.42. In the Capital Region, prices were around $3.45 per gallon, though some prices were lower in Saratoga County.

In addition to the state’s gas tax holiday, 24 counties capped their gas sales tax with rates between 3-4.75%.