Drivers will get a bit of relief at the gasoline pump – as much as 30 cents a gallon – starting Wednesday.
That’s when a statewide gas and diesel tax holiday goes into effect for New Yorkers who are paying record high prices that continue to escalate.
Also, Erie and Niagara counties are among the 25 counties in the state that have elected to cap local sales tax per gallon to provide added savings.
Between the initiatives by both the county and state, Erie County Executive Mark Poloncarz said he expects gas prices in the county to go down by up to 30 cents a gallon.
It is a needed lift for drivers who have seen gas prices climb to an average of $4.84 per gallon in the Buffalo Niagara region, according to AAA. In New York, the average gas price has nearly hit $5, now at $4.93 per gallon.
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“It may take a few days based on when retailers receive their next delivery, but … prices should drop by about 25 to 30 cents a gallon,” Poloncarz said on social media Tuesday.
The motor fuel excise tax, state sales tax and Metropolitan Commuter Transportation District sales tax on motor fuel and diesel motor fuel will remain suspended by New York through the end of the year.
The initiative is estimated to provide $609 million in relief statewide for families and businesses, according to Gov. Kathy Hochul, who called it a critical lifeline for those who most need it.
“Fuel prices have surged in recent months, hurting working families and small businesses the most, and it is crucial that we provide New Yorkers relief,” Hochul said in a statement.
Erie County will collect tax on the first $2 charged per gallon of gas and diesel through February 2023. Meanwhile, Niagara County and other Western New York counties – Allegany, Cattaraugus and Chautauqua – will collect tax on the first $3 charged per gallon of gas and diesel.
Poloncarz has warned that the county’s Office of Consumer Protection will be monitoring gas station prices to ensure that the savings from the cut in the gas tax are passed on to consumers and not used by retailers to gain additional profit.