Florida Looks To Directly Lower Gasoline Prices With Tax Relief

While the Biden Administration moved to release 50 million barrels from the Strategic Petroleum Reserve (SPR) in a bid to lower gasoline prices, Florida Governor Ron DeSantis intends to "zero out" the state gas tax "for as long as we can."

Florida has a 26.5-cent per gallon state gas tax, which, if "zeroed out," could save Floridians more than $1 billion.

Governor DeSantis announced on Monday that during the upcoming legislative session, he will propose a so-called gas tax relief that could save residents in the state more than $1 billion in gas tax relief. The gas tax holiday is expected to save up to $200 for the average Florida family, according to the office of Governor DeSantis.

"Gas prices have been rising due to inflationary pressures from bad federal policies, so we here in Florida need to step up and provide relief to our citizens," said Governor DeSantis. "Today, I am proposing that during session, the Florida Legislature provide more than $1 billion in gas tax relief for Florida families."

Florida's average price of a gallon of gasoline is $3.351 as of November 23, compared to the national average of $3.403 per gallon, according to AAA data.

The 26.5-cent per gallon state gas tax is one of Florida's taxes on gasoline, which also include federal gas taxes of 18.4 cents a gallon and local option gas taxes of up to 12 cents per gallon. The governor of Florida can only influence the state gas tax.

A gas tax holiday in Florida could be more effective in lowering gasoline prices in the state than the 50-million-barrel release from the SPR announced by U.S. President Joe Biden today. 50 million barrels of oil is two and a half days of American petroleum consumption, which was at 20.5 million barrels per day (bpd) in the pre-pandemic 2019.

By Charles Kennedy for Oilprice.com

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