Governor Josh Stein signed a law Friday temporarily suspending the state tax on gasoline and diesel until November 30, in an effort to ease the impact of the pandemic. price increase of fuel in North Carolina.
“I’m signing this bill to keep more money in people’s pockets, but this temporary relief is just one step,” Stein said in a statement released by his office. Governor Stein added that he will continue working with those seeking to make the cost of living more affordable year-round.
The legislation, known as “Relief at the Gas Station”It will come into effect on Saturday, October 10.
It is the first time the state has temporarily suspended the entire state fuel tax since it was created in 1921, according to the legislation's tax memorandum.
The measure was approved with bipartisan support, although Democrats questioned its electoral motivation.
Related: Will gas prices go down? Bill to suspend state fuel tax reaches governor
The estimated savings per gallon through November is 30 cents.
Although the suspended tax amounts to 41 cents per gallon, drivers will not necessarily see a reduction of that same amount at gas stations.
The suspension could reduce the price of gasoline by about 30 cents per gallon for two months, according to estimates. dthe Penn Wharton Budget Model.
The model estimates that consumers would receive about 72% of the gasoline tax reduction.
Likewise, the Speaker of the State House of Representatives, Destin Hall, estimated that the savings could approach 30 to 35 cents per gallon, taking as a reference the experiences of other states that have implemented similar suspensions.
The reduction will not necessarily be immediate either. Gas stations can continue selling fuel purchased when the tax was still in effect.
As they receive new supplies at lower costs, Prices could be adjustedThe magnitude of the changes will depend on each establishment and market conditions.
Final prices are also subject to external factors, including oil costs. because of the war in IranThe distribution and conditions of supply and demand also play a role. Therefore, the tax suspension does not guarantee that all gas stations will reduce their prices by the same proportion.
Republish our stories for free on your website or newspaper. We follow the Creative Commons license. Click the box and follow the instructions.
