Fresh off fuel tax changes from coast to coast, lawmakers in several states are already pushing back. Some want to undo recent hikes. Others want to hit pause and freeze fuel tax rates.
In 2025, Washington bumped its gas tax up by 6 cents. Connecticut went the other way, cutting its diesel tax by 3.5 cents.
Jan. 1 changes
At the start of the year, small fuel tax increases of about a penny or less hit Florida, Georgia, Minnesota, and North Carolina. Tiny decreases, also under a penny, showed up in New York, Utah, and Vermont.
These changes kicked in automatically. Many are tied to inflation or written into law, meaning lawmakers didn’t have to vote on them.
Michigan saw the biggest change. In 2025, a nearly $2 billion transportation funding plan changed how fuel taxes work in the state.
The old sales tax on gas and diesel is gone. Instead, the state converted the sales tax to an excise tax. On top of the existing excise tax, truckers and others now pay a 52.4-cent-per-gallon state excise tax.
Oregon
In Oregon, a planned gas tax hike hit the brakes before it could kick in on Jan. 1.
After Gov. Tina Kotek signed a transportation funding plan that included a 6-cent gas tax increase, voters fired back. A statewide petition drive was launched to stop the hike until the public could vote on it.
The petition worked. The state was forced to pause the gas tax increase until the November election.
Not everything was stopped, though. Changes to truck taxes included in the plan are not affected by the petition.
Kotek has since urged lawmakers to scrap the entire package. That would also wipe out the truck tax changes.
The Oregon Trucking Association is pushing back. The group says the truck tax updates are long overdue and actually help truckers.
Instead of waiting until November, Democrats at the statehouse want to move the public vote up to May.
Republicans argue the rush is no accident. They say lawmakers are trying to avoid voter anger while supporters of the tax plan are up for reelection.
Let me help you out, @GovTinaKotek.
The answer is yes.
The only reason to move this referendum to the May primary is to keep it off the November ballot—with your name on it. You know it’s a loser. Everyone does.
You rammed through a wildly unpopular bill, then doubled down by… https://t.co/6TKdA9kJ5n
— Real Diehl for Governor (@Real_EdDiehl) January 24, 2026
Washington
Washington lawmakers may soon hit the rewind button on last year’s fuel tax hike.
Last July, the gas tax increased by 6 cents to 55.4 cents per gallon. At the same time, the diesel tax went up 3 cents to 52.4 cents. Another 3-cent diesel increase is set for July 2027.
The taxes don’t stop there. Inflation-based increases are also baked in. Gas taxes are set to rise again this summer. The diesel adjustment for inflation starts in 2028.
The new bill, HB2404, would roll the diesel tax back to 49.4 cents. The scheduled 2027 increase would also be cancelled.
Rep. Alex Ybarra, R-Quincy, said higher diesel taxes hit everyone in the wallet.
“Diesel and other special fuels play a vital role in Washington’s economy. From moving crops to getting groceries onto store shelves, these fuels power our supply chain,” Ybarra said. “When the state raises taxes on diesel, the cost burden falls on everyone.”
Ybarra added that higher fuel taxes push truck drivers to buy fuel in nearby states instead.
“This bill would lower operating costs for producers and freight haulers and keep Washington-grown products competitive,” he said. “It would also keep the cost of goods from increasing even more.”
Pennsylvania
A bill in Pennsylvania aims to shake up how gas and diesel taxes are collected.
Right now, the Keystone State allows fuel rates to change automatically. Rates can change every January without lawmakers voting on it.
The current gas tax is 57.6 cents per gallon. Diesel is higher at 74.1 cents.
Rep. Joe D’Orsie, R-Mount Wolf, said the current system almost guarantees higher prices at the pump year after year. His bill, HB2144, would stop the automatic changes.
“In a time of crippling stagflation, the last thing Pennsylvanians need as they fill up their tanks is a ‘new’ tax automatically added to their essential purchase, without having a say or their voice in Harrisburg being able to vote on such a measure,” D’Orsie said.
Illinois
Illinois fuel taxes crept up by about a penny last summer.
A seven-year-old state spending plan tied fuel taxes to inflation. As a result, rates change annually.
Since July, the diesel rate has been 55.8 cents. The gas rate is 48.3 cents.
A new bill, HB4211, would hit the pause button. It would freeze the annual fuel tax hike for one year. The next increase would take effect in July 2027. LL
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