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Massachusetts Proposes Two-Month Gas Tax Suspension

By Markets Desk · · 1 min read
A fuel pump nozzle resting on a concrete island at a gas station

Governor Healey seeks to suspend the 24-cent fuel tax for two months as average gasoline prices hit $4.41 per gallon.

Key points

  • Gasoline averages $4.41 per gallon in Massachusetts, while diesel reaches $6.40 per gallon.
  • The proposed two-month suspension removes the 24-cent-per-gallon state tax on fuel.
  • Lost tax revenue will be replaced by projected Fair Share surtax collections to maintain infrastructure funding.

The average price of gasoline in Massachusetts stands at $4.41 per gallon. Governor Maura Healey announced plans to suspend the state gas tax for two months.

Diesel prices have climbed to $6.40 per gallon, approaching historical records. The proposal aims to pass 24 cents in savings directly to drivers at the pump.

Record Highs Drive Relief Proposal

AAA Northeast confirms these figures represent all-time highs for this time of year. Usage levels remain stable compared to last year despite the sharp price increases.

Industry experts cite crude oil costs and the conflict in Iran as primary drivers. These external factors have pushed fuel costs significantly higher since February.

Funding Replaced By Surtax Collections

The administration states lost revenue will be covered by Fair Share surtax collections. This approach preserves funding for transportation projects, public transit, and road maintenance.

Lieutenant Governor Kim Driscoll emphasizes the need to protect family budgets and small businesses. The measure is designed to provide targeted relief without cutting infrastructure spending.

Legislation Targets Immediate Cost Reduction

The tax suspension would begin seven days after the legislation is signed into law. Gas stations must pass the full 24-cent savings to customers immediately.

Several business and agricultural organizations support the measure, including the Massachusetts Farm Bureau Federation. The bill is expected to appear in the governor’s closeout budget proposal.

Based on reporting by WWLP, compiled by the Tradingbird desk.

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