Gas prices remain high after state suspends gas sales tax

Gas prices in Poughkeepsie on June 5, 2022.

HUDSON VALLEY – New York State suspended the state portion of sales tax on gasoline on June 1, 2022, but consumers have not benefitted from the action.  Instead, the prices are continuing to climb.

State lawmakers claimed that the elimination of the state sales tax on gasoline would save motorists approximately 16 cents per gallon.  Several counties also enacted local laws to suspend their portion of the gasoline taxes, in an effort to keep prices suppressed.

The state has acknowledged that there is no mechanism in place to guarantee that gas stations must pass the saving on to the customer.

On June 1, 2022, the average price of regular unleaded gasoline in New York was $4.93 per gallon, according to the Automobile Association of America (AAA).  On Monday, AAA calculates the average price of gas is $5.04 per gallon.

Dutchess County is one of several counties in the state that capped the county sales tax on fuel to help consumers.  County Executive Marc Molinaro, when asked about the rising prices said “While we did see an average decrease early in the week… as we said when we decided to cut our tax, federal and state policies continue driving up prices and any savings evaporated quickly.”  The federal government has failed to address its portion of fuel taxes.

Molinaro, who is running for Congress, also said, “As they likely continue to skyrocket (gas prices), we don’t want to profit from the pain we all experience at the pump. We did what state law allows us to do – the politicians in Washington better take this seriously and must do their part.”