Economists Doubt Gas Tax Suspension Would Provide Meaningful Relief to Ohioans
Survey of 19 economists shows majority doubt proposed gas tax suspension would meaningfully help Ohio residents despite 34% price spike from Middle East conflict.
COLUMBUS, OHIO — Most economists believe a proposed three-month suspension of Ohio’s 38.5-cent-per-gallon gas tax would not provide significant financial relief to residents, according to a new survey conducted as fuel prices continue climbing amid international tensions.
A Scioto Analysis poll of 19 economists found that 11 disagreed with the proposition that a three-month gas tax suspension would provide meaningful financial relief to Ohio residents, while six said it would and two were uncertain.
The debate comes as Ohio lawmakers consider legislation to temporarily suspend the state gas tax while average gas prices have shot up 34% since President Donald Trump launched a war against Iran at the end of February. Iran retaliated by choking off the Strait of Hormuz, through which 20% of the world’s oil and gas transits.
Limited Savings for Motorists
Bob Gitter of Ohio Wesleyan University said the savings wouldn’t amount to much for the average motorist. “If you buy a tank of gas every week you would save $6,” he wrote in the comment section of the survey. “Over a three month period that would be about $80. Low-income people could use a break but $80 would not, in my view, be meaningful financial relief.”
Kevin Egan of the University of Toledo said consumers wouldn’t even save that much. “Consumers would not see a 38.5-cent reduction in gasoline prices; probably more like half that,” he wrote.
Geopolitical Impact on Fuel Prices
The price spike stems from ongoing tensions in the Middle East, where passage through the Strait of Hormuz remains restricted as Trump fluctuates between saying a deal with Iran is imminent and threatening another all-out attack. The strategic waterway serves as a critical chokepoint for global energy supplies.
While some Ohio lawmakers are floating the three-month tax suspension as relief for residents facing affordability challenges, the economic consensus suggests the benefits would not outweigh the costs of lost transportation revenue.
The proposed suspension would temporarily eliminate Ohio’s state gasoline tax, which currently stands at 38.5 cents per gallon and helps fund transportation infrastructure projects throughout the state.
