Gov. Maura Healey will ask Massachusetts lawmakers to suspend the state’s 24-cent-per-gallon gasoline tax for two months, a proposal her administration estimates would reduce state revenue by $120 million. The governor said the temporary pause would help drivers and truckers as fuel prices remain elevated, according to her announcement Tuesday.
The plan is not yet law. Healey intends to include it in a closeout supplemental budget, meaning the House and Senate must approve the suspension before motorists see any change. The administration proposes replacing the lost revenue with unbudgeted collections from the state’s surtax on annual income above $1 million, WBUR reported Wednesday.
At the full statutory rate, a 12-gallon purchase carries $2.88 in Massachusetts gasoline tax. That arithmetic represents the maximum direct tax reduction on such a fill-up, not a guarantee that retail prices would fall by the same amount. Wholesale costs, supply conditions and retailer pricing can affect how much of a tax suspension reaches consumers.
The administration said regular gasoline was averaging about $4.40 to $4.41 per gallon and diesel about $6.39 to $6.40 when Healey unveiled the proposal. The governor tied the increase to the Iran war and federal energy policy. An Axios report noted that the eight-week window would extend through the closing weeks of Healey’s reelection campaign.
The proposal faces resistance at the State House. House Speaker Ron Mariano said lawmakers have historically opposed suspending the tax because it supports transportation infrastructure and may deliver limited savings to residents. His position matters because the governor cannot pause the levy unilaterally; the Legislature controls whether the tax change and replacement funding advance.
Republican gubernatorial nominee Mike Minogue has advocated a broader policy that would suspend the tax when gasoline exceeds $4 per gallon and move toward eliminating it. He criticized Healey’s two-month plan as temporary and election-driven. Healey’s proposal differs by setting a fixed duration and identifying state revenue to cover the estimated loss.
The debate mirrors a national argument over fuel-tax holidays. The federal gasoline tax is 18.4 cents per gallon, and an AP review found that suspending it would require congressional approval and could reduce money available for highways and transit. Economists and industry groups have also questioned whether retailers pass every cent of temporary tax relief to drivers.
Supporters will also have to settle implementation details: effective dates, treatment of diesel, retailer compliance and reconciliation for fuel already taxed in distribution. Those mechanics would determine how quickly a statutory pause appears in street-level prices.
For Massachusetts residents, the immediate issue is legislative timing. Until a bill clears both chambers and receives the governor’s signature, the 24-cent tax remains in place. Lawmakers will also have to decide whether surplus surtax revenue is an acceptable substitute for transportation money and whether a two-month pause offers enough household relief to justify the tradeoff.
