'Gas tax holiday?' Candidates for governor debate suspending CT's 25 cent fuel tax
Republican Ryan Fazio wants to suspend the state's fuel tax for three months, saving drivers 25 cents a gallon. Gov. Ned Lamont proposed the same thing in March, but the idea stalled.
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As Connecticut gas prices close in on $4.50 per gallon – $1.33 higher than one year ago – the candidates for governor are debating a "gas tax holiday.”
But energy experts said suspending the state’s retail fuel tax would only provide temporary relief, leaving drivers paying higher prices again in a few months.
"JUST TOO HIGH"
Gas prices are on a rollercoaster and drivers want off.
“It puts a strain on your budget,” said Olivier Jean-Pierre, of Norwalk. “You’re just trying to make ends meet.”
Republican Ryan Fazio is pushing for a three-month “gas tax holiday,” which would save drivers 25 cents a gallon.
“From now until the end of the year, we should suspend the gas tax. Cost of living, taxes and energy costs are just too high,” Fazio said. “We can fund that because the Special Transportation Fund has a balance of roughly $600 million predicted this year. This would cost just over $100 million.”
Fazio would also suspend Connecticut’s 50-cent-per-gallon diesel tax, but not the 8.81% levy on wholesale fuel.
DÉJÀ VU
If this sounds familiar, it is.
Gov. Ned Lamont first pitched the idea in March after President Donald Trump launched the war with Iran, sending gas prices skyrocketing.
“If you're doing, you know, 20 gallons a week, that would maybe save you five bucks,” Lamont said on March 11. “And you do that over a month, that saves you 20 bucks.”
“It’s a $40 million monthly hit,” Connecticut House Speaker Matt Ritter (D-Hartford) said on March 20. “Then the question is, how long can you continue to do it? And then, what impact does it have on revenue that might prohibit us from doing more targeted credits and cuts to Connecticut taxpayers?”
Lamont’s campaign accused the governor’s opponent of stealing his idea.
“Ryan Fazio is once again rewriting history,” said campaign spokesperson Lauren Gray. “Gov. Lamont called for a temporary gas tax suspension in March, when gas prices were first increasing because of Trump’s reckless war with Iran. Where was Ryan Fazio then?”
Fazio said Lamont never presented lawmakers with a concrete plan.
“I don’t think I have ever said I opposed it,” he said. “I think it's most important to provide long-term, definitive tax relief.”
As governor, Fazio said he would push to permanently lower the gas tax by creating a surcharge for electric vehicle registrations. Other states have passed similar laws because EVs do not pay the fuel tax, which funds roads and bridges.
WILL A “GAS TAX HOLIDAY” WORK?
Five states already suspended their gas tax, while five more are considering it. On Tuesday, Massachusetts Gov. Maura Healey proposed a two-month rollback.
“While President Trump is driving up costs with his war and tariffs, in Massachusetts, we’re doing everything we can to make life more affordable for people and businesses,” Healey said in a statement.
But experts said the savings could be muted, especially as volatile oil markets see wild fluctuations and the seven-month-long war with Iran is at a stalemate.
“I think that it would be very optimistic to say that 90 days is the magic number when this, when all of this is going to be resolved,” said Chris Herb, president of the Connecticut Energy Marketers Association. “And even if it is, those refineries will take months, if not years, to come back online.”
Connecticut last suspended the retail fuel tax – but not the diesel tax – in April 2022 when Russia invaded Ukraine. That holiday lasted nine months, then the tax was phased back in.
DRIVERS: “BAND-AID” RELIEF
Drivers said they’ll take any relief – even if it’s temporary.
“I think it’s worth it,” Jean-Pierre said. “Anything that’s going to help give relief to consumers is good.”
Darien driver Christine Keane agreed.
“It is a good kind of relief,” she said “’Band-Aid,’ so to speak, for a while.”
