Skyrocketing fuel costs are driving some states to ease enforcement on tax-exempt dyed diesel, allowing certain drivers a brief reprieve as high prices squeeze the pump.
When diesel prices started surging in May, Senator Josh Hawley (R-MO) introduced the Gas Tax Suspension Act (S. 4485), temporarily eliminating federal taxes on non-aviation gasoline and diesel. If passed, the legislation would pause, for 90 days, the current federal fuel tax of 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel.
Representative Jeff Van Drew (R-NJ), too, proposed suspending the federal gas tax, but for 18 months.
The current average price for a gallon of on-highway diesel is higher today ($6.38) than it was ($5.64) when the original proposals were made, but Sen. Hawley's bill has seen no action since its May 11 introduction, having been read twice and referred to the Committee on Finance.
In the 21 weeks since their proposals, a gallon of diesel has spent five weeks above $5.64 per gallon, and smashed a new record high level at $6.52 per gallon Sept. 21.
Neither Van Drew nor Hawley's office responded to CCJ's query asking if either would reintroduce or reprioritize fuel tax legislation with diesel prices currently above a record-setting $6 per gallon each of the last three weeks.
States, too, have the power to suspend their portion of fuel taxes, and several have implemented relief measures.
Georgia suspended its tax of 37 cents per gallon on diesel through Oct. 29.
Indiana extended its gasoline sales and excise tax suspension through Nov. 4, saving roughly 60 cents per gallon, but elected not to include its 64 cent tax on diesel fuel.
Utah reduced its per-gallon gas tax rates by 15% through the end of the year.
