NY Lawmakers Push for Gas Tax Holiday as Prices Soar

State senators urge governor to suspend gas tax to provide relief to commuters, farmers, and small businesses

Apr. 6, 2026 at 1:53pm

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New York state lawmakers are calling on Governor Kathy Hochul to temporarily suspend the state's gas tax in response to skyrocketing fuel prices. Led by Senator Michelle Hinchey, a group of 15 senators sent a letter to the governor arguing that the spike in gas prices, up over $1 since March, is severely impacting commuters, farmers, and small businesses across the state. They say suspending the gas tax could save New Yorkers an average of 16 cents per gallon.

Why it matters

The high gas prices are forcing many New Yorkers to choose between filling up their tanks or affording basic necessities like food. A gas tax holiday could provide much-needed relief, though the governor has expressed skepticism about whether the savings would be fully passed on to consumers.

The details

New York's average gas price is now over $4 per gallon. State lawmakers are urging Hochul to follow the lead of some local counties, like Ulster and Dutchess, which have already moved to temporarily suspend their own gas taxes or cap sales tax on fuel. However, Hochul has cautioned that past gas tax holidays did not always result in lower prices for consumers, as fuel companies simply raised their own prices to offset the tax break.

  • Gas prices in New York have risen over $1 since early March 2026.
  • In 2022, a similar state-wide gas tax holiday was championed by Senator Hinchey.

The players

Governor Kathy Hochul

The governor of New York who lawmakers are urging to suspend the state's gas tax.

Senator Michelle Hinchey

A Democratic state senator from Saugerties leading the push for a gas tax holiday.

New York State Lawmakers

A group of 15 state senators who sent a letter to Governor Hochul calling for a temporary suspension of the state's gas tax.

Ulster County

A local county that has proposed capping its 4% sales tax on gas prices above $3 per gallon.

Dutchess County

A local county considering removing its 3.75% sales tax on fuel up to $3 per gallon.

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What they’re saying

“Trump's war in Iran has closed the Strait of Hormuz and sent gas prices skyrocketing, hurting average Americans who just need to get to work. While the Federal Government forces New Yorkers to choose between filling up their tank or putting food on the table, we, the state, should do everything we can to save New Yorkers money.”

— Senator Michelle Hinchey

“We've done it before and what happens is, the companies increase their cost by the same amount, so the consumer only sees it continue to go up. That's the reality of what happened last time we did this.”

— Governor Kathy Hochul

What’s next

The governor will decide whether to approve the lawmakers' request for a gas tax holiday in the coming weeks.

The takeaway

The push for a gas tax holiday in New York highlights the difficult tradeoffs facing policymakers as they try to provide relief to consumers struggling with record-high fuel prices. While a tax break could offer immediate savings, the governor's skepticism about whether the savings would be fully passed on to drivers underscores the complex dynamics at play.