Drivers Don’t See Full Benefit From State Gas Tax Holidays

Several states are trying to give drivers a break from high gas prices by temporarily suspending their gasoline taxes. But consumers don’t receive the full benefit of gas tax holidays, according to a recent analysis by the nonpartisan Penn Wharton Budget Model, which looked at suspensions in three states through mid-May. Instead, they have to share the savings with gas suppliers, which capture part of the economic benefit if pump prices don’t fall by the full amount of the suspended tax.