Federal Gas Tax Suspension Considered: Here's How Much LI Drivers Would Save

LONG ISLAND, NY — Drivers on Long Island are still paying elevated prices at the pump as national debate grows over whether federal and state gas taxes should be temporarily suspended.

The pressure on drivers comes as the war in Iran has disrupted oil markets and pushed gasoline prices higher for much of the spring and early summer. President Donald Trump said this week he intends to temporarily suspend the 18.4-cent per gallon federal gas tax.

In the United States, taxes and fees contribute an average of 51 cents to the price of every gallon of regular gasoline. While the federal government collects an 18.4-cent tax, the remaining portion is composed of various state-level taxes.

Gas Taxes In New York

An NBC News analysis looked at how the cost of a gallon of regular gasoline has changed since the war began and how the cost at the pump would change with the suspension of taxes. Here’s how it breaks down in New York:

Price per gallon before the war: $3.00
Price per gallon on June 25: $4.17
Price per gallon without federal taxes: $3.98
Price per gallon without federal or state taxes: $3.74

Right now, AAA lists the average gas price in Nassau County at $3.9790 per gallon, compared to $4.0090 per gallon in Suffolk County.

While $4 per gallon is a dollar higher than prices before the war began, it’s also lower than the prices in other New York Counties. Gas in Brooklyn is listed at $4.01 per gallon, while Queens prices are currently listed at $4.0530 per gallon. Moving west, prices continue to rise: Manhattan gas is listed at $4.39 per gallon while the average price in the Bronx is $4.1270 per gallon. In Westchester, drivers are paying among the highest prices in the state for gas, per AAA data: $4.4070 per gallon.

In New Jersey, prices are similar: $3.9670 per gallon in Hudson County, $4.0580 per gallon in Essex County, $3.9050 per gallon in Bergen County, and $3.9810 per gallon in Monmouth County.

In the western part of the state, those prices dip slightly, with a low price of $3.7790 per gallon in Warren County.

What Are Long Islanders Saying?

Some states have moved on their own to provide relief at the pump. Georgia, for example, temporarily removed its taxes of 33.3 cents per gallon on gasoline and 37.3 cents per gallon of diesel. Indiana, Kentucky and Utah also made changes.

In New York, there have been calls for a gas tax holiday since March, with a letter to the governor being signed by, among others, Long Island state senator Siela Bynoe.

What Happens Next?

A federal gas tax holiday would require congressional approval. Democrats in the House and Senate in March proposed measures for a temporary gas tax holiday.

Supporters of a temporary tax holiday say it could help commuters, families and small businesses immediately, especially in places where driving is a necessity. Critics say gas-tax suspensions can drain transportation funding, may not be fully passed along to consumers, and do not address the underlying oil-market disruption.