Fifteen New York state senators are asking Governor Kathy Hochul to back a gas and diesel tax break to reduce the cost of refueling.
The senators supported a letter from Hudson Valley state Senator Michelle Hinchey, urging the governor to suspend the taxes due to the recent spike in fuel prices caused by the conflict in Iran.
“This increase has disrupted the daily lives of New Yorkers across the state, from commuting to industrial production to tourism,” Hinchey wrote. She believes a gas tax break “would be a crucial step in assisting New Yorkers struggling with these rising costs.”
New York previously implemented a gas tax break from June 1, 2022, to December 31, 2022, reducing around 16 cents per gallon in state excise and sales tax on gasoline and diesel. Some counties also limited local taxes to support the effort.
This move came after lawmakers from both parties called for a suspension of the gas tax in response to soaring prices caused by inflation and the situation in Ukraine, with the average gallon reaching over $4 in some areas of the state.
Hinchey informed Hochul that during the 2022 tax break, the average price per gallon in New York was $3 for regular gas and $4.01 for diesel. However, since the conflict in Iran and the resulting closure of the Strait of Hormuz, gas prices have surged to $3.94 and diesel to $5.77 per gallon.
“This is happening at a time when our farmers, manufacturers, and other industries are already dealing with rising input costs from arbitrary federal tariffs,” Hinchey noted.
In response to the request, Hochul expressed reluctance in a statement released on Friday.
“We’ve tried this before and what happens is, companies just raise their prices by the same amount, so consumers end up paying more. That’s what occurred last time we attempted this,” Hochul explained. She also pointed out that the federal government imposes nearly 20 cents per gallon in gas tax, suggesting that they need to provide relief and address the issue they created.
New Yorkers currently face a combination of state and local taxes when purchasing gasoline. The state charges around 33 cents per gallon, while some counties impose a local sales tax of either 7% or 8%.
