Red States Are Pausing Their Gas Taxes to Blunt the Impact of Trump’s Iran War

Indiana Gov. Mike Braun announced Wednesday that he would temporarily suspend his state’s gas tax, making it the latest red state to take action to lower prices at the pump after oil costs skyrocketed amid the war in Iran.

“I am declaring a gas tax holiday to give Hoosiers relief from the pain at the pump from high gas prices. Affordability is my top priority,” Braun said in a press release.

Gas prices in Indiana hit an average of $4.14 per gallon on Wednesday. Braun said his emergency declaration to suspend the 7% usage tax on fuel for 30 days is expected to save residents a combined $50 million, according to IndyStar.

Georgia Gov. Brian Kemp signed a state House bill into law March 20 that suspended the collection of motor fuel excise tax until May 19.

“Hardworking Georgians know best how to spend their money, not the government,” Kemp said in a press release. “That’s why I’m proud to sign these bills and, along with the General Assembly, deliver meaningful tax relief on top of the other measures we’ve taken in recent years. Because we budget conservatively, we can take steps like these that actually deliver on affordability issues for families in our state.”

Utah also reduced the state’s gas tax by 6 cents per gallon, lowering it from 38 cents to 32 cents starting July 1 until the end of this year.

“Utah is choosing an abundance mindset,” Gov. Spencer Cox said prior to signing the tax cut into law. “That means we don’t wait for problems to hit families at the pump or communities in a dry year. We build the partnerships and the infrastructure that keep life affordable and our state resilient. We owe our kids a future that is reliable, affordable, and firmly in our hands.”

Oil, diesel and jet-fuel prices have increased significantly since the start of the U.S.-Israeli war with Iran began in late February and traffic through the Strait of Hormuz diminished. Despite a tentative ceasefire, passage through the critical waterway remains unclear. Gas prices across the U.S. are over $4 a gallon for the first time since 2022.

Other states may follow suit with gas tax cuts.

Lawmakers in West Virginia are discussing a few ways to tackle gas prices, with proposals coming from both Democrats and Republicans in the state Legislature.

“We expect the elevated cost of fuel to carry on for the next several months, so we want to be proactive in doing this,” Sean Hornbuckle, the West Virginia House minority leader, told MetroNews.

In an April press release, Republican Del. Chris Anders said, “When government makes everything more expensive, the least it can do is get out of the way.”

In California, where gas prices have reached over $5.50 a gallon, Republican state lawmakers have introduced legislation aiming to suspend the state gas tax and key fuel regulations for one year.

But Democrats in the state Senate struck down the GOP proposal to protect funding for critical infrastructure projects.

In a statement, Republican state Sen. Tony Strickland, who introduced the act, said, “To say I’m disappointed is an understatement. I’m frustrated because we have an opportunity to help working families at a time when we have an affordability crisis. Democrats in Sacramento refused to help struggling Californians.”

In Maryland, Democratic Gov. Wes Moore has rejected calls from state Republicans to slash the state’s gas tax because a suspension could create a $100 million deficit in the transportation budget.

“Marylanders need real relief, not a 30-day gas tax suspension that would blow a $100 million hole in our transportation budget while we’re working to close Maryland’s budget shortfall,” a spokesperson for Moore said in a statement to Fox45 News. “If Maryland Republicans are serious about lowering costs, they should pick up the phone and call Donald Trump and tell him to end this missionless war — instead of asking Maryland taxpayers to help pay for it.”

In New York, there are also calls for a gas tax suspension, though Democratic Gov. Kathy Hochul has expressed skepticism about its effectiveness and suggested the federal government should be the entity responsible for alleviating high gas prices.

“Since this was initiated by our federal government, I think they have a responsibility to suspend all the excise taxes on gasoline and federal taxes across the board,” Hochul told Politico in March.