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An Exxon on Ben White Boulevard posts prices to passing traffic in Austin as rates continue to rise, April 10, 2026.<\/p>\n
Sara Diggins\/Austin American-Statesman<\/p>\n
As the\u00a0war in Iran rages on<\/a> and gas prices continue to climb<\/a>, some Texas politicians are calling for a temporary pause on fuel taxes<\/a> \u2014 a move they say would give drivers immediate relief but critics argue would drain money from roads, schools and transportation projects.<\/p>\n The idea, known as a gas-tax holiday, has gained new attention as several states have already moved to suspend or reduce fuel taxes this year. In Texas, the debate has split along questions of cost, authority and whether pausing the tax would actually translate into meaningful savings at the pump.<\/p>\n Article continues below this ad<\/p>\n What is a gas-tax holiday?<\/p>\n A gas-tax holiday is a temporary pause, cut or waiver of taxes charged on motor fuel.<\/p>\n At the federal level, the gas tax is 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel, according to the Federal Highway Administration. That money is one of the main revenue sources for the federal Highway Trust Fund, which helps pay for highway and transportation programs. A federal gas-tax holiday would require action by Congress; the Bipartisan Policy Center notes the federal government has never suspended the tax before.<\/p>\n Texas also has its own fuel tax.<\/p>\n Article continues below this ad<\/p>\n A Shell gas station on Riverside Drive in Austin posts gas prices and a \u201cno fuel shortage\u201d sign to passing traffic as rates continue to rise, April 10, 2026.<\/p>\n Sara Diggins\/Austin American-Statesman<\/p>\n The state charges 20 cents per gallon on gasoline and diesel, a rate that has not changed since 1991. In Texas, 15 cents of that tax goes toward the state highway system, while 5 cents goes to public education. A state gas-tax holiday in Texas would be separate from any federal holiday.<\/p>\n But a gas-tax holiday may not lower pump prices by the full amount of the tax. Fuel taxes are often collected from suppliers or distributors before the fuel reaches the station, and researchers have found that some savings may be kept by suppliers or retailers instead of fully passed on to drivers. The Bipartisan Policy Center estimated that suspending the federal gas tax would likely lower pump prices by about 10 to 16 cents per gallon, not the full 18.4 cents.<\/p>\n Article continues below this ad<\/p>\n Which Texas politicians support a gas-tax holiday?<\/p>\n Several Texas politicians on both sides of the aisle have called for some kind of gas-tax pause, though they are not all calling for the same thing.<\/p>\n James Talarico, an Austin Democratic state representative running for U.S. Senate, has called for suspending the federal gas and diesel taxes until average fuel prices fall back to where they were before the war in Iran. His campaign has argued the move would save drivers about $200 a year and long-haul truckers about $4,000 a year.<\/p>\n At an Austin gas station,\u00a0Talarico framed the proposal as a cost-of-living measure, saying,\u00a0\u201cAmericans in the last election voted for two things: To end the forever wars and to make life more affordable.\u00a0But the people in power have done the exact opposite. Texans need relief. Americans need relief.\u201d<\/p>\n Article continues below this ad<\/p>\n Gina\u00a0Hinojosa, an Austin Democratic state representative running for governor, is pushing Gov. Greg Abbott to suspend the Texas gas tax.<\/p>\n Her campaign said she held a press conference after\u00a0Talarico\u2019s federal proposal and called on Abbott to use emergency powers to pause the state tax.\u00a0<\/p>\n Texas gubernatorial candidate and state representative Gina Hinojosa, D-Austin, calls for Texas Governor Greg Abbott to suspend the state gas tax in a press conference at a Mobil gas station in Austin, April 23, 2026.<\/p>\n Sara Diggins\/Austin American-Statesman<\/p>\n \u201cWashington needs to act to bring down gas prices, but right now, Greg Abbott has the power to make gas 20 cents cheaper for every Texan driving to work,\u201d\u00a0Hinojosa said.\u00a0<\/p>\n Article continues below this ad<\/p>\n Sid Miller, Texas\u2019 Republican agriculture commissioner, has also called for a state gas-tax suspension. In a May 4 statement, Miller urged Abbott to suspend the state motor-fuels tax as prices climbed. Miller argued Texas should follow other states that have already moved to pause or reduce gas taxes.<\/p>\n Miller has also supported a federal gas-tax pause, calling on President Donald Trump and federal officials to temporarily suspend the federal tax.\u00a0<\/p>\n \u201cTexas families are getting hammered at the pump, and enough is enough,” Miller said. “Record-high gas prices are crushing working Texans, farmers and ranchers with every school drop-off, every tractor filled, and every grocery run. It\u2019s time for immediate relief.”<\/p>\n Texas Agriculture Commissioner Sid Miller attends a rally with former President Donald Trump at Million Air, a private airplane terminal at Austin-Bergstrom International Airport, Friday October 25, 2024.<\/p>\n Jay Janner\/American-Statesman<\/p>\n The push has drawn resistance from Abbott\u2019s side. Abbott campaign spokesperson Eduardo Leal told <\/a>Axios<\/a> the governor does not have authority to suspend the state tax, adding that the money is \u201cconstitutionally dedicated to fund roads and public schools.\u201d\u00a0<\/p>\n Article continues below this ad<\/p>\n<\/p>\n
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