More miles for your money? What the gas tax holiday means

STEUBENVILLE — For drivers in Steubenville and throughout Jefferson County, Ohio’s gas tax holiday could mean keeping a few extra dollars in their pockets each time they fill up. How much they save depends on how much gasoline they buy and whether the tax savings are reflected in the price they pay at the pump.

The 90-day holiday took effect Oct. 4 and runs through Jan. 2, 2027, suspending Ohio’s 38.5-cent-per-gallon state gasoline tax. The state’s 47-cent-per-gallon diesel tax also has been suspended during the same period.

Under the law, retailers must pass the full value of the tax savings on to consumers.

For drivers, that translates into potential savings of several dollars per fill-up — and more for households with multiple vehicles or long daily commutes.

Here’s what the holiday could mean for your wallet:

10 gallons: $3.85 in state gasoline tax savings.

12 gallons: $4.62 in savings.

15 gallons: $5.78 in savings.

18 gallons: $6.93 in savings.

20 gallons: $7.70 in savings.

The calculations use Ohio’s regular gasoline tax rate of 38.5 cents per gallon. They represent the tax removed, not a guarantee that the price displayed on a station’s sign will fall by precisely that amount compared with an earlier price.

For someone who buys 15 gallons twice a week, the suspended tax represents about $11.55 per week, or roughly $50 over an average month. If that buying pattern continues throughout the 90-day holiday, the potential savings would total about $150.

Drivers who fill up less frequently will save less, while those who regularly purchase larger quantities of fuel could see greater savings.

Why prices may still vary

The tax holiday does not freeze gasoline prices. Crude oil costs, fuel distribution expenses, supply disruptions and competition among retailers continue to influence what drivers pay.

That means motorists may see prices rise or fall during the holiday even though the state gasoline tax is suspended. A change in the posted price does not, by itself, establish how much of that change is attributable to the tax break.

Drivers should also remember that the federal gasoline tax remains in place. Ohio’s action removes the state gasoline tax temporarily; it does not eliminate every tax or cost included in the price of fuel.

What about diesel?

Commercial drivers and other motorists who use diesel fuel are included in the holiday. Ohio’s regular diesel tax of 47 cents per gallon has been suspended, potentially reducing fuel costs for truckers, businesses and drivers of diesel-powered vehicles.

The broader economic effects will depend on how fuel prices change and how businesses respond to lower fuel costs.

A temporary break, not a permanent change

Ohio lawmakers approved the suspension as a temporary measure intended to provide relief to motorists. The state is using reserve funds to offset the lost motor fuel tax revenue and protect transportation funding during the holiday.

The suspension is scheduled to end Jan. 2, 2027, after which the regular state fuel taxes are set to return.

For Steubenville-area drivers, the practical takeaway is simple: The holiday offers a chance to save on every gallon purchased while the suspension remains in effect, but individual savings depend on fuel consumption and pump prices.

Keeping track of local prices and comparing stations can help motorists determine where to fill up while making the most of the temporary tax break.