Maryland's emergency gas tax pause expires; prices expected to rise

WASHINGTON - The reprieve at the gas pump in Maryland is over and drivers are once again feeling the pinch of higher gas prices.

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For the past month, prices had fallen to around $3.70 for a gallon of regular gasoline. But FOX 5's Maureen Umeh reports that now with the gas tax suspension over -- prices are expected to shoot back up past $4 a gallon.

Governor Larry Hogan signed a 30-day suspension into law back on March 18 to help residents who were hit with higher gas prices after Russia invaded Ukraine.

The bill which did away with Maryland's gas tax of 36 cents per gallon for both regular and diesel for one month was passed with unanimous support in Annapolis, and at the time, some lawmakers said they would have liked for the tax break to last longer than 30 days.

Maryland comptroller, Peter Franchot who originally suggested the idea, wanted to see it in place for 90 days arguing that the state's healthy fiscal outlook could support forgoing revenues from gasoline sales.

The gas tax holiday cost the state an estimated $100 million dollars, and that money comes out of the state's Transportation Trust Fund, Umeh says. That fund is used to pay for road and highway projects.

On Monday in Maryland, the average price for a gallon of gasoline according to AAA is $3.92. The national average is at $4.08.

In Virginia, Gov. Glenn Youngkin has proposed a three-month suspension of the states 26 cent gas tax beginning in May, but It's hung up in the General Assembly.

Democrats say the plan is too costly and have instead proposed giving $50 direct rebate payments to Virginia car owners with a maximum of $100 per household