ANNAPOLIS, Md. — Governor Larry Hogan on Friday officially signed legislation suspending the state's gas tax for 30 days.
Earlier in the day, the State Senate and House of Delegates unanimously approved each others bills, in order for them to get to Hogan's desk and become law.
The gas tax holiday will expire at 11:59 p.m. on April 16.
Between now and then, gas stations will not be required by law to collect the 36.1-cent-per-gallon state motor fuel tax or the 36.85-cent-per-gallon diesel fuel tax.
The legislation does not however mandate gas stations to reduce their prices by that amount, so there is no guarantee that prices at the pump will in fact be as low as the bill intends. There is no current state law that prevents price gouging either.
Comptroller Peter Franchot says he is working with the state’s roughly 2,300 gas stations to "encourage them to lower their prices so motorists realize the savings in full, as intended."
Also, the per-gallon rate at each gas station still depends on crude oil prices based on global supply and demand, and therefore drivers should not expect any particular fixed price statewide.
“This is, of course, not a cure-all, and market instability will continue to lead to fluctuations in prices, but we will continue to use every tool at our disposal to provide relief for Marylanders,” said Governor Larry Hogan.
Franchot added that the bill provides refunds to businesses who already paid state tax on their fuel shipments prior to the start of the 30-day suspension.
If gas stations follow the legislation as it's intended, Maryland drivers could save up to $100 million over the next month.
