As gas prices across Arkansas hover around $4.00 per gallon, State Representative Kendon Underwood (R-16) is following federal efforts, calling for an emergency suspension of state fuel taxes.
The proposal, announced Thursday, seeks a 90-day suspension of the state’s 24.7-cent gasoline tax and 28.5-cent diesel fuel tax.
Underwood is requesting that Governor Sarah Huckabee Sanders call a special legislative session to address the spike in energy costs, which has been fueled itself by the ongoing conflict in Iran and subsequent blockade of the Strait of Hormuz.
Underwood’s move mirrors efforts in Washington D.C., where national legislation has been introduced to suspend the federal 18-cent gas tax—a move President Donald Trump has signaled he would support. Other states are in discussions regarding a gas tax holiday as well.
However, the proposal faces a steep climb. While Governor Sanders has not committed to the special session, her Communications Director, Sam Dubke, stated the administration is “exploring all responsible actions.”
The proposal is meeting resistance from construction and trucking groups. They warn that “gas tax holidays” threaten the funding necessary for road and bridge maintenance. The gas tax is the primary source of revenue for the Highway Trust Fund.
On the federal level, Senate Majority Leader John Thune (R-S.D.) questioned whether the savings would actually reach consumers or be absorbed by the supply chain.
Senator John Hoeven (R-N.D.) argues that the real solution lies in geopolitical stability and reopening oil trade routes rather than temporary tax breaks.
Since the start of the Iran war in February, gas prices have surged by around 50%. As of Tuesday, the national average for gas sat at $4.50 per gallon, while diesel—vital for the state’s agricultural and shipping sectors—has soared to $5.64.
Representative Underwood is encouraging Arkansans to contact their local representatives to voice support for the suspension, framing it as a necessary shield against a global energy crisis hitting home in the Natural State.
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