North Carolina cuts state fuel tax by 41 cents through Thanksgiving
North Carolina lawmakers signed the Relief at the Pump bill into law on Friday, cutting the state gasoline tax by 41 cents per gallon effective immediately and lasting through Nov. 30.
The reduction comes as drivers across the state face some of the nation’s highest fuel prices, with AAA reporting an average of $4.09 for regular unleaded gasoline in the state on the morning of the vote. By lowering the tax, officials hope to provide direct financial relief to commuters and families during a period of rising grocery, utility and fuel costs.
Governor Josh Stein, a Democrat, praised the bill as a step toward keeping more money in people’s wallets and emphasized that the relief is “just one step” toward broader affordability. House Speaker Destin Hall, a Republican, highlighted the state’s “responsible budgeting” that allows the measure without jeopardizing credit ratings.
The legislation passed with bipartisan support, the House voting 111‑1 and the Senate 41‑0, with a single Guilford County Democrat dissenting. The cut will reduce revenue normally earmarked for the Department of Transportation’s Highway Fund. To offset the shortfall, the state’s Stabilization and Inflation Reserve account will replace the lost tax dollars, drawing from an estimated $362.3 million at stake. The reserve holds about $518 million, and Treasurer Brad Briner noted that the $11 billion total reserves should protect the state’s credit rating.
Senators Phil Berger Jr. and Buck Newton both underscored the pressure on North Carolina families from high fuel costs and lauded the legislature’s stewardship of tax dollars. While the tax cut eliminates 41 cents per gallon from the state portion of pump prices, analysts say the actual price change at the pump could vary based on market conditions.
Similar temporary fuel‑tax reductions have been enacted this year in Georgia, Indiana and Ohio, reflecting a broader trend of state governments responding to volatile energy markets.
The tax suspension will remain in effect until Thanksgiving, after which lawmakers may reassess the measure’s impact and consider longer‑term strategies for keeping transportation costs affordable.
