North Carolinians will soon see gas prices drop after lawmakers overwhelmingly approved a temporary suspension of the state’s 41-cent fuel tax.
The Relief at the Pump Act would temporarily reduce the state gas tax to zero. The measure now needs Gov. Josh Stein’s signature.
The House approved the bill 111-1, while the Senate passed it 41-0. If signed, the suspension would run through November 30.
However, drivers should not expect prices to instantly fall by the full 41 cents.
Lawmakers estimate motorists could save roughly 25 to 30 cents per gallon. A 15-gallon fill-up could save about $3.75 to $4.50.
Fuel prices would still depend on oil markets, wholesale costs and competition between stations.
The proposal comes as regular gas prices remain well above last year’s levels. According to GasBuddy, North Carolina’s regular gas price is now $4.03 per gallon, compared with $2.82 one year earlier.
The tax holiday would reduce transportation revenue by roughly $360 million. State reserve funds would be used to replace that money, helping protect road and highway funding during the temporary suspension.
