A suspension of the federal gas tax could ease Mainers’ pain at the pump, but it may not lead to an instant — or noticeable — drop in prices.
And some officials warn doing so could mean losing crucial revenue for transportation infrastructure.
President Donald Trump has proposed temporarily suspending the roughly 18-cent surcharge as a way to offset rising gas prices, which have climbed recently amid the war in Iran. The president can’t do so alone, but lawmakers from both parties are already pursuing legislation to pause the tax. Proposals range from a 90-day suspension to one that lasts until October.
The tax is 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel fuel. The money, about $23 billion per year, funds federal highway and transit programs.
Patrick De Haan, head of petroleum analysis at GasBuddy, said consumers could see prices fall quickly if the taxes were suspended, but he cautioned that such a decline could be hidden by other market factors continuing to drive prices up. He said the taxes are paid directly by consumers for each gallon purchased — rather than being paid for by a wholesaler or distributor who passes along the costs.
“If markets are going up already while this legislation suddenly takes effect, motorists aren’t going to literally see the 18-cent reduction. But instead of a 30-cent increase, they may see only a 12-cent increase,” De Haan said.
It’s also possible that gas stations could use the suspension as a chance to increase their own margins, cutting into the actual price change consumers see. But De Haan said competition between stations should generally keep that kind of maneuvering in check.
“Where one retailer has an opportunity to lower their price over their competition, they’re going to do that,” he said. But he added: “it’s not impossible that some stations that don’t have competition may take a little bit more time in lowering their price.”
As of Wednesday, a gallon of regular gas averaged $4.52 in Maine — just higher than the national average of $4.51, according to data aggregated by motor club AAA. Diesel averaged $5.80 per gallon in Maine and $5.66 nationally.
DELEGATION WEIGHS IN
Rep. Chellie Pingree, D-Maine, said Congress should “absolutely” suspend the tax if doing so would spell “even modest relief” to working families. But Pingree placed the blame for rising gas prices squarely on Trump and his war in Iran, which she called illegal.
“I’m glad the President has finally caught up. But pausing the gas tax will not clean up the mess he made,” Pingree said in a written statement. “The real solution is ending the war that sent gas prices soaring in the first place.”
Rep. Jared Golden, D-Maine, said he wanted to see the specifics of any proposal before weighing in. He said a suspension could bring short-term relief, but it could also undermine the state’s ability to maintain its infrastructure.
“Falling behind on our roads and bridges would also create a high cost for Mainers,” Golden said in a written statement. “The details matter.”
A spokesperson for Sen. Susan Collins, R-Maine, said the senator believes in considering all options to help lower costs. But she said the length of any potential suspension would be a crucial detail, and she also pointed to Maine’s transportation infrastructure needs.
“Weakening the Highway Trust Fund could further exacerbate the challenges facing Maine’s already underfunded roads and bridges,” spokesperson Blake Kernen said.
A spokesperson for Sen. Angus King, I-Maine, said a gas tax holiday would offer short-term relief, but he said that the long-term solution to high gas prices is ending the war. He, too, added that losing the tax revenue would impact road repair and maintenance.
“An appropriate way to offset the tax holiday would be a windfall profits tax on the oil companies, which have seen massive revenue increases due to the war’s impact on gas and diesel prices,” spokesperson Matthew Felling said in an email.
STATE TAX WOULD STAND
Even with the federal tax suspended, Mainers would still be on the hook for the state-level tax.
Maine’s gas tax is currently 30 cents per gallon, according to Maine Revenue Services. The tax is the 23rd highest among states, according to a 2025 review by the Tax Foundation.
Some states have already suspended or reduced their own gas taxes. De Haan pointed to Indiana, Kentucky and Georgia as recent examples. In Indiana, for example, the governor declared an energy emergency, suspending the state’s gas tax until June.
It’s not clear that Maine will follow suit.
Gov. Janet Mills’ office said suspending the state’s gas tax would require approval by the Maine Legislature. In a Wednesday email, spokesperson Ben Goodman said high fuel costs are the “direct result of the president’s shortsighted war in Iran.”
He added that gas tax revenues pay for the Maine Department of Transportation’s bridge and road projects, and that a funding shortfall would cause “significant long-term maintenance challenges within the state’s transportation system.”
On top of the 30-cent tax, the state charges about 1.5 cents per gallon to fund ground water oil clean-up, said Sharon Huntley, spokesperson for the Department of Administrative and Financial Services. She added that if the Legislature were to suspend the gas tax, doing so would not necessarily affect the clean-up fee.
Staff Writer Randy Billings contributed to this story, which also contains reporting by The Associated Press.
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