As of the Associated Press roundup published September 30, 2026, about one-third of states had taken some form of fuel-tax relief—but that does not mean one-third had suspended taxes for all drivers. Measures ranged from temporary state-tax holidays to partial cuts, delayed increases and harvest-time rules allowing some agricultural users to put dyed diesel on highways. The distinctions matter: the eligible fuel, tax, driver and end date vary, and not every tax reduction reaches the pump in full.
Which states have fuel-tax relief, and what kind?
The latest dated roundup covered here is the Associated Press report of September 30, 2026. Its figures are a snapshot, not a guarantee that every measure remains in effect today. In particular, Indiana’s reported exemption was due to end October 5, and Ohio’s measure had passed the legislature but was not yet confirmed as signed or in force in that report.
| State or states | Measure reported | Who or what it covers; timing |
|---|---|---|
| Georgia | Temporary suspension of the state motor-fuel excise tax | September 29 at 12:01 a.m. through October 29, 2026, under the governor’s September 28 order. Covers fuels taxed under the state motor-fuel law, including gasoline and clear diesel. Some local taxes remain. |
| Ohio | Legislature passed a 90-day fuel-tax holiday | AP reported rates of 38.5¢ per gallon for gasoline and 47¢ for diesel, and a planned $725 million general-fund transfer for roads and bridges. The governor said he intended to sign; confirm the final law and effective date before treating the holiday as in force. |
| Indiana | Fuel-tax exemption extended | AP reported the exemption running through October 5, 2026—close to expiration as of its September 30 report. Check for a subsequent extension. |
| Utah | Six-cent-per-gallon reduction | A partial cut, not a full suspension; AP reported it lasting six months through the end of 2026. |
| Illinois | Scheduled CPI-related increase delayed | Public Act 104-0468 suspended the scheduled adjustment for July 1–December 31, 2026. The state fuel tax remains in force. |
| Kentucky | Scheduled increase delayed | AP reported a delay to an increase scheduled for July. The roundup did not specify a per-gallon relief amount or an end date. |
| Alabama, Arkansas, Louisiana, Missouri, Nebraska, North Carolina, North Dakota, Oklahoma and Texas | Temporary relaxation of restrictions on dyed diesel | AP reported harvest-time allowances for agricultural users to use tax-exempt dyed diesel in highway vehicles. These are narrow use-rule changes, not general fuel-tax holidays for motorists. |
The AP report said about one-third of states had enacted or announced some form of relief. That broad count includes measures with very different beneficiaries and mechanics; it should not be read as saying that one-third of states had eliminated fuel taxes for all motorists.
What Georgia’s current suspension actually covers
Georgia’s September order suspends the state motor-fuel excise tax from September 29 through October 29, 2026. The governor’s office listed the suspended state rates as 33.3¢ per gallon for gasoline and 37.3¢ for diesel. These are tax rates, not a promise that retail prices will fall by the same amount.
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The order also suspends a limited state sales and use tax for fuel used exclusively in locomotives by regulated carriers. It does not wipe out prepaid local sales tax or other local sales and use taxes. Georgia’s Department of Revenue says the state excise tax is calculated annually using a statutory formula that accounts for average fuel economy of Georgia-registered vehicles and changes in fuel efficiency and the Consumer Price Index. The department says distributors collect the tax and pass it on to consumers; that description applies to Georgia’s system, not automatically to every state’s.
For context, Georgia’s governor’s office reported average prices of $4.19 per gallon for regular gasoline and $6.24 for diesel on September 28, 2026. Those were the announcement’s then-current state averages, not live prices or a measure of how much the tax order changed prices.
Why a tax cut may not equal the same-size pump-price drop
A lower tax creates room for a lower retail price, but the actual change at the pump also depends on fuel-market costs and how much of the tax reduction is passed through to buyers. The Associated Press, citing AAA, reported national averages on September 30, 2026, of $4.43 per gallon for regular gasoline and $6.41 for diesel. Those dated national averages describe the price environment, not the savings attributable to any one state policy.
The Penn Wharton Budget Model’s March 25, 2026 analysis used modeled pass-through assumptions of 0.72 for gasoline and 0.60 for diesel. In other words, its projections did not assume that every dollar of tax relief would appear in the retail price. The model assumed lower diesel pass-through because commercial supply can be stickier. These are model inputs/findings for projections, not observed universal pass-through rates or measured results from the September orders.
PWBM estimated revenue losses of $361,958,590 for a hypothetical two-month Georgia holiday and $483,656,426 for a hypothetical two-month Ohio holiday. Those estimates used rates projected as of January 1, 2026, along with reported annual revenue and 2024 transportation-sector fuel-consumption estimates, and adjusted for existing exemptions and refunds. They are not actual revenue losses from Georgia’s September–October order or Ohio’s proposed 90-day measure.
Who benefits, and what happens to road funding?
A general fuel-tax suspension applies much more broadly than a dyed-diesel allowance limited to eligible agricultural use. A delayed scheduled increase is narrower still: it prevents a future rate rise but leaves the current tax in place. When comparing relief, look at the scope of eligible drivers and fuels, cents per gallon, start and end dates, legal mechanism, likely price pass-through and how the state will replace or forgo transportation revenue.
Fuel taxes help fund transportation under many state arrangements. Ohio’s reported plan to transfer $725 million from the general fund to road and bridge funding shows one way a government may temporarily offset that loss. It is a budget substitution, not money that ceases to be needed. Without a replacement source, a suspension means less revenue available from that tax for its usual uses.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to check whether relief applies to your next fill-up
- Identify the state and fuel. Check whether the measure covers gasoline, clear diesel, another motor fuel or only dyed diesel used by qualifying agricultural users.
- Check the legal status and dates. A bill passed by a legislature is not necessarily effective yet. Look for the signed law, executive order or state revenue department notice, and confirm its start and expiration date.
- Separate state and local taxes. A state suspension may leave local taxes or other charges in place, as Georgia’s order does in specified cases.
- Compare the tax rate with the pump price carefully. The per-gallon tax amount is not a guaranteed price reduction; market costs and pass-through affect what drivers pay.
- For farm or commercial use, verify eligibility before using dyed fuel on a public road. The reported harvest measures are temporary and state-specific exceptions, not general permission to use tax-exempt fuel in highway vehicles.
This roundup is based on AP’s September 30, 2026 reporting and the cited Georgia and Illinois state materials. It is not a complete legal census of every state policy; short-lived exemptions and orders can change, so verify the current state rule before relying on it.
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