Maryland Republican lawmakers are introducing legislation that would pause the state gas tax for thirty days amid skyrocketing oil prices, but the Moore administration is not signaling support for the idea.
Before the U.S. and Israel’s attack on Iran, the national gas price average sat at $2.98 — as of March 16, the average had jumped to $3.72.
Oil barrel prices soared from $70 a barrel to nearly $120 and currently hover at around $110 due to a significant decrease in ship traffic through the Strait of Hormuz, which about 20 percent of the world’s oil traffic typically passes through.
Maryland’s gas tax is about 46 cents per gallon, and the revenue goes to the state’s Transportation Trust Fund, which helps fund infrastructure projects like highways and bridges.
The gas tax “holiday” could save Marylanders an average of $7 per fill-up, but it would also cost the state around $100 million in revenue.
“Marylanders need real relief, not a 30-day gas tax suspension that would blow a $100 million hole in our transportation budget at the same time we’re working to close Maryland’s budget shortfall,” Ammar Moussa, a spokesperson for Gov. Wes Moore, said in a statement. “If Maryland Republicans are serious about lowering costs, they should pick up the phone and call Donald Trump and tell him to end this missionless war—instead of asking Maryland taxpayers to help pay for it.”
Republican leadership did not appear concerned about the impact the $100 million could have on the transportation budget, believing it would eventually even out.
"I don't think it will cause a massive fiscal hole to the Transportation Trust Fund,” House Republican Leader Jason Buckel (R-Allegany County) said to members of the press on Friday. “I think it's something that can be repaired, as long as it's on a short term basis. And we hope that by April, by May, what's going on in Iran has largely concluded favorably for the United States and our interests and oil markets return to normal.”
Maryland implemented a similar gas tax halt in 2022 with bipartisan support in the General Assembly when Russia launched its full-scale invasion on Ukraine.
Senate Republican Whip Justin Ready (R-Carroll and Frederick Counties) said the fiscal impact at the time worked out in the end.
"The net effect by the end of 2022 was basically negligible. The funds were basically restored— there was no loss of projected overall revenue,” Ready said. “That's not to say you could cancel [the tax] for six months and there wouldn't be a loss of revenue.”
Ready says he supports the war in Iran, believing the gas price crunch is temporary.
“I think it would be wrong to say we should end a war, because gas prices rise temporarily, predictably,” he said, adding that he’s glad progress is being made on reopening the Strait of Hormuz and does not take the loss of U.S. military lives lightly. “You're wiping out a state sponsor of terror. So that will pay long term economic dividends, in my view.”
Prior to Moussa’s statement, Republican leadership said it would be sending a letter to the governor asking for his support, noting the tax pause would take effect immediately upon his signature.
The bill announcement was made in the hours prior to the start of the daily legislative session, rendering House Speaker Joseline Peña-Melnyk (D-Anne Arundel and Prince George’s Counties) and Senate President Bill Ferguson (D-Baltimore City) unavailable for immediate comment.
Senate Republican Leader Stephen Hershey (R-Caroline, Cecil, Kent and Queen Anne’s Counties) said he has not talked directly to Ferguson, but the Senate president is “aware” of it.
