FAIRVIEW, N.C. (NCN News) — Governor Josh Stein signed a bill suspending the state gas tax and lowering costs for families across North Carolina.
Rising grocery, utility, and gas prices are making the costs too high for people across our state,” Stein said at a signing event in the western North Carolina community of Fairview. “I am signing this bill to keep more money in people’s wallets, but this temporary relief is just one step. I remain committed to continuing to work with anyone who wants to make everyday living more affordable all year long – not just during election season.”
Governor Stein says he is committed to addressing rising fuel costs and lowering costs for North Carolina’s families. Last week, Governor Stein directed the North Carolina Department of Revenue to provide penalty relief from the prohibition on the highway use of red-dyed diesel fuel through the end of 2026 and successfully secured federal penalty relief for the use of the same fuel to lessen financial pressure on farmers.
In light of the signing, State House Speaker Destin Hall said:, “Hardworking North Carolinians need relief at the gas pump, and help is on the way. Years of responsible budgeting have put North Carolina in a position to provide meaningful relief when families need it most, and pausing fuel taxes is another way House Republicans are working to make our state more affordable for everyone.”
Business groups are also echoing support for the suspension, which ends November 30.
“House Bill 3 will provide welcome relief for North Carolina’s small businesses and farms. Fuel costs affect nearly every part of the supply chain, from production to delivery, and leave customers with less money to spend at local businesses. Farmers depend heavily on fuel, and higher prices drive up the cost of bringing supplies to the farm and getting crops and livestock to market,” said National Federation of Independent Business Director State Director Gregg Thompson.
How much of this suspension will show up in pump prices is still an open question. When the legislature passed the tax suspension, Hall said the price break will likely be closer to 30 cents per gallon than 41. Senate President Pro Tem Phil Berger also noted that market forces impact pricing. The arrival of Hurricane Isaias could also impact prices as gulf coastal refineries may have to close. The price is also impacted by the ongoing war in Iran which has limited oil deliveries from the Strait of Hormuz.
An attempt by legislative Democrats to include enforcement provisions to make sure prices dropped was not allowed by the State Senate.
The tax itself is not collected at the pump but at the wholesale level, and it usually takes several days for the gas to make it to your locat station.