State National

Ohio Republicans introduce gas tax relief plan to cut costs at the pump amid refining shortfalls 

By Breeauna Sagdal | October 01, 2026

Following Biden-era climate policies that drastically reduced the amount of oil refineries across the United States, Republicans are now turning to creative solutions to deliver relief at the pump until the Trump administration is able to bring those refineries back online.

On Wednesday, Ohio lawmakers advanced HB 519, a creative price relief package that includes a gas tax holiday provision, suspending the state’s collection of motor fuel taxes for 90 days. The expanded package, which declares an emergency, would take immediate effect upon passage and reappropriate roughly $725 million from surplus General Revenue Funds to replace lost road and Highway Patrol revenues.

Sponsored by Reps. Andrea White, R-Kettering, and Jim Thomas, R-Canton, the gas tax holiday provision would cut Ohio’s 38.5-cent-per-gallon gasoline tax and 47-cent-per-gallon diesel in time for this year’s harvest season. For the average tractor trailer, that means about $141 less to get Ohio’s crops to the local elevator, grocery store, or food bank.

Upon passing the House Wednesday,  House Speaker Matt Huffman said the relief package is part of the broader Republican affordability agenda.

“This initiative is one of the many pieces of legislation our Caucus has focused on to deliver relief. We didn’t just make a plan; we followed through and passed a bill to put more money back into the pockets of hardworking Ohioans,” Speaker Huffman said. “I’m grateful to Andrea White and Jim Thomas for their leadership on this particular piece of legislation, and for their continued work to lower the costs for families across the state.”

Retailers, which would be required to pass the full savings to customers, could be reimbursed $125 each for software and receipt changes, accounted for in the bill’s fiscal notes. Though, officials have confirmed that neither the Rainy Day Fund nor Ohio Department of Transportation project accounts would be impacted.

According to the American Energy Alliance, and AEI.org, Ohio’s pain at the pump is a reflection of the reduced national refining system following climate-focused regulations that resulted in closures.

The St. Croix refinery, which was shut down in 2021, dropped U.S. refining capacity by nearly 5% from a high of about 19 million barrels a day in 2020. Large West Coast plants, such as Phillips 66’s Los Angeles-area refinery and Valero’s Benicia facility, removed another 17 percent of California’s refining capacity.

Reports from the U.S. Energy Information Administration show that the system is tapped out and has almost no spare capacity, causing any outage flows to impact product prices quickly. AEI argues that hollowing out local refining has forced more exports to refine crude into gas before importing for use, while leaving markets more exposed to shocks as product flows have been disrupted.

Acknowledging that the state of Ohio can’t control global oil markets, White said the state can act on the taxes it levies at the pump.

“The pain that people are feeling at the pump and in the pocketbook is real, and it’s not letting up. There’s a lot we can’t control at the state level, but what we can do is suspend the gas tax of 38.5 cents a gallon and the diesel tax of 47 cents a gallon with an emergency clause to bring relief immediately,” White said. “That savings per gallon will add up quickly for Ohio drivers, truckers and farmers, schools and businesses. I’m happy that we can provide this relief for all Ohioans.”

Crediting prior budget decisions that have resulted in a surplus of general funds, Rep. Thomas expressed gratitude for the responsible budgeting of Republican leadership.

“This commonsense legislation will benefit every Ohio driver,” said Thomas. “Thanks to the responsible budgeting of Republican leadership, we were able to answer the call for help that will immediately benefit Ohioans.”

The bill now heads to Gov. Mike DeWine’s desk, but could soon reduce the average fill-up by about $10 for gasoline, or $16 for diesel.

Related Stories

State

Ohio EPA begins process to end E-Check testing in Northeast Ohio

By Marla Miller

State

Buckeye Institute asks Ohio Supreme Court to hear Akron municipal income tax case

By Killian Bies

State

18 Ohio Medicaid providers indicted in alleged $355,000 fraud schemes

By Killian Bies