Utah Proposes Temporary Gas Tax Cut to Lower Fuel Prices

New bill aims to streamline fuel supply and provide short-term relief for drivers

Published on Feb. 24, 2026

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The Utah Legislature has rerouted its plans to restructure the state's gas tax, instead proposing a temporary 15% cut in the gas tax to lower fuel prices for consumers. The bill would also work to increase fuel supply in the state through measures like fast-tracking pipelines and expanding refinery capacity. This comes after a dispute with neighboring Idaho over the potential impact of the original gas tax proposal.

Why it matters

The dispute between Utah and Idaho over gas taxes had raised concerns about potential price increases for drivers in both states. The new proposal aims to find a compromise that provides short-term relief while also addressing the underlying supply issues driving high fuel prices in the region.

The details

The bill sponsored by Republican Rep. Cal Roberts would lower Utah's gas tax from $0.379 per gallon to $0.319 per gallon, a 15% reduction, from July 1 to December 31 of this year. The state plans to use $10-12 million from its general fund to cover the gap. The bill also includes measures to increase fuel supply, such as fast-tracking pipelines and working with refineries to expand capacity. House Speaker Mike Schultz said the goal is to achieve a 10-15% long-term cut in gas prices for Utahns.

  • The gas tax reduction would be in effect from July 1 to December 31, 2026.
  • The bill is scheduled to be heard by the House Revenue and Taxation Committee on Wednesday, February 19, 2026.

The players

Cal Roberts

A Republican state representative from Draper, Utah who sponsored the bill to address gas prices.

Mike Schultz

The Republican Speaker of the Utah House of Representatives, who has been involved in negotiations with Idaho over the gas tax issue.

Mike Moyle

The Speaker of the Idaho House of Representatives, who proposed a joint memorial opposing Utah's original gas tax legislation.

Spencer Cox

The Republican Governor of Utah, who has been engaged in discussions with legislative partners on the gas tax issue.

Enterprise Products

A gas and oil company that operates a pipeline in Grand County, Utah that could potentially increase its capacity to help boost fuel supply.

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What they’re saying

“The issue in the market is that you've had California Democrats regulate refineries out of existence.”

— Cal Roberts, State Representative (dailyfly.com)

“If we can get an additional 30,000 barrels in that pipeline over what is there today and get it right into the Wasatch Front, that has the ability to drop gas prices significantly for the state of Utah.”

— Mike Schultz, Speaker of the Utah House of Representatives (dailyfly.com)

“We've been very engaged with our legislative partners as well, and I remain very hopeful and optimistic that we will land that bill in a place where we can all be friends and do what's good for the people of Utah and good for the people of Idaho and the western United States as well.”

— Spencer Cox (dailyfly.com)

What’s next

The bill is scheduled to be heard by the Utah House Revenue and Taxation Committee on Wednesday, February 19, 2026. If passed, the temporary gas tax reduction would go into effect on July 1, 2026.

The takeaway

This compromise proposal aims to provide short-term relief for Utah drivers while also addressing the underlying supply issues that have driven up gas prices in the region. By working with refineries and pipeline operators to increase fuel availability, the state hopes to achieve a more sustainable 10-15% reduction in gas prices for the long term.