Gasoline prices continue to climb across the country. Although prices are much higher than normal, gas costs can vary significantly depending on where you live. States also have different gasoline taxes in place – and these taxes can impact the total price you pay. New York is getting rid of its gas tax for the rest of 2022, and residents could save some money. Find out what you need to know.
Your state’s gas tax rate can influence how much you pay at the pump. Some states have a higher gasoline tax rate than others. The most recent state fuel excise tax report from the American Petroleum Institute shows that California has the highest gasoline fuel tax and diesel fuel tax in the nation. Several other states are not too far behind.
When gasoline prices are high, residents of states with higher gasoline taxes may pay even higher rates per gallon to fill up their cars. Some states are finding ways to relieve higher than normal gas prices.
Reducing or temporarily suspending gasoline taxes is one solution that can help drivers keep more money in their bank accounts. New Yorkers will be relieved at the pumps until the end of the year. If you live in New York, this change could impact your finances.
What this means for New Yorkers
New York officials recently announced that the state will temporarily suspend its gasoline tax for the remainder of the year. What exactly does this mean?
From June 1, 2022 through December 31, 2022, New York will suspend certain fuel taxes. This suspension includes fuel excise tax, state sales tax, and metropolitan commuter transportation district sales tax on gasoline and diesel fuel.
With this change, drivers will get a reduction of at least $0.16 per gallon statewide. Some counties will see greater savings.
While $0.16 a gallon might not seem like a lot of money, this change could help New York State residents feel less financial pressure as daily gas and food costs continue. to soar.
Tips for coping with high gas prices
If high gas prices are causing you financial hardship, you are not alone. Many Americans are looking for ways to minimize the economic impact of rising gas prices. The following tips can help you better manage high gas costs:
- Take advantage of service station loyalty programs. Many gas stations have loyalty programs. These programs are free, and they could save you a few cents on every gallon you buy when you use your membership benefits.
- Pay for gas with a gas rewards credit card. You can earn rewards on your spending with gas rewards credit cards. You may be able to redeem your rewards for free gas or earn cash every time you fill up at the pump.
- Review gas prices in your area. Keep an eye on gas prices in your local community. You may be able to save some money by going to a nearby gas station with a lower rate.
If you’re driving a car that’s not getting the best gas mileage, you may want to adjust your driving habits and improve your vehicle maintenance to reduce wasted money and gas.
Every little bit of money saved makes a difference and can help your budget. For additional advice, check out these personal finance resources.
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