With gas prices on the rise in the wake of U.S. air strikes against Iran, Utahns are now set to see a reprieve in the gas tax this summer.
Lawmakers want to give Utah drivers a temporary 15% cut to the state’s portion of the gas tax. That equates to roughly 6 cents per gallon.
It’s part of a broader effort by the Legislature aimed at affordability in 2026. The bill, HB575, is off ot the governor, and it was “a long ways coming,” said sponsor Sen. Brady Brammer.
“There's been a lot of negotiations that have happened leading up to this bill, including agreements from various suppliers and refineries that they would be able to increase production,” he told his colleagues. “The intent is that this will lower the gas price for our average Utahns.”
The cut comes against the backdrop of the U.S. and Israeli war against Iran, which has disrupted global oil markets and led to a spike in gas prices. Nationally, the average price for a regular gallon of gas jumped almost 27 cents since last week, according to AAA. In Utah, the average price of a gallon rose almost 19 cents in the wake of those military strikes.
Although championed by legislative leaders earlier in the session and having near-unanimous support in the House, the bill hit a brief snag earlier this week when a Senate committee initially voted it down.
Sen. Lincoln Fillmore, one of the Republicans who voted against the bill, said his reservations came from, in part, concern over infrastructure funding that comes from money collected via the gas tax.
“I represent a fast-growing area of the state,” he said of his no vote. “I think it's important that we have funding for our roads.”
The bill is expected to cost the state $11.9 million in revenue.
Additionally, Fillmore had concerns about the temporary nature of the cut, which would expire at the end of the year, saying he did not want to create “whiplash for our constituents.” According to AAA, gas prices usually rise in the summer months as more people take road trips and summer blend gasoline is produced to reduce evaporation.
The committee later reconsidered the bill and eventually passed it on to the full Senate. Fillmore supported the final version of the bill, saying that he was thankful for the process.
“I appreciate the negotiators working with so many stakeholders to arrive at this position,” he said.
After a signature by Gov. Spencer Cox, the tax cut will go into effect on July 1 and last until Dec. 31.
Produced with assistance from the Public Media Journalists Association Editor Corps, funded by the Corporation for Public Broadcasting, a private corporation funded by the American people.
