Senator Michelle Hinchey, State Lawmakers Call for Gas and Diesel Tax Holiday

Senator Michelle Hinchey
ALBANY, NY Senator Michelle Hinchey today released a letter co-signed by 14 of her State Senate colleagues, urging Governor Kathy Hochul to implement a statewide gas and diesel tax holiday in response to sharp price increases at the pump stemming from the Trump administration's foreign policies.
 
Senator Michelle Hinchey said, “Trump’s war in Iran has closed the Strait of Hormuz and sent gas prices skyrocketing, hurting average Americans who just need to get to work. While the Federal Government forces New Yorkers to choose between filling up their tank or putting food on the table, we, the state, should do everything we can to save New Yorkers money, and suspending the fuel tax will provide immediate relief for working families and seniors across our state. Every penny we can save people matters, and we are calling on Governor Hochul to swiftly lower gas prices at the pump for New Yorkers.”

The full text of the lawmakers’ letter to Governor Hochul is included below.
 
March 31, 2026
 
Dear Governor Hochul:
 
We write today in strong support of a New York State gas and diesel tax holiday in response to the recent spike in prices caused by the war in Iran. This increase has disrupted daily life for New Yorkers statewide, from commuting to industrial production to tourism. A gas tax holiday, as was done in 2022, would be a vital step toward helping New Yorkers struggling with these increased costs.
 
On March 2, in response to President Trump’s air strikes, Iran announced the closure of the Strait of Hormuz.  According to the United States Energy Information Agency, around 20% of the world’s crude oil and other petroleum products are shipped through the Strait.  
 
At the time, AAA reported that the average price per gallon in New York was $3.00 for regular gas and $4.01 for diesel.  Since the closure, gas has spiked to $3.94, and diesel has risen even more sharply to $5.77, used in much of our farm equipment, commercial trucking, and other key areas of our economy. This increase comes at a time when our farmers, manufacturers, and other industries already face damaging input cost increases from arbitrary and disruptive federal tariffs.
 
In response, several states are now considering the temporary suspension of State-level gas and diesel sales taxes. Democratic Senator Kelly and Representative Blumenthal have also proposed the Gas Prices Relief Act to temporarily suspend the federal gas tax. New York suspended gasoline and diesel taxes in June 2022, through the end of that year, saving consumers an average of 16 cents per gallon, with some of our counties following the State’s lead and partially suspending their own applicable local taxes.  
 
According to the Institute on Taxation and Economic Policy, the gas price increase was costing New Yorkers approximately $300M per month in additional expenses as of March 23.  New Yorkers are already struggling as the Trump administration callously and irresponsibly raises the cost of daily life, from cutting health care subsidies to repealing residential green energy incentives to tariff policies that the conservative Tax Foundation estimates cost the average household $1,000 in 2025.

Events of the past month have underscored the importance of renewable, domestically produced energy sources.  As we must prioritize wind, solar, and other clean, safe energy production, we must also ensure that everyday New Yorkers are not harmed by reckless federal foreign policy that disrupts the oil supply many of us still rely on. A gas tax holiday, whether with triggers tied to price at the pump or a specific timeline, would be a tremendous help to people struggling to afford their daily commutes, visits to family, and business expenses.  
 
We thank you for your consideration and urge swift and timely action on this matter.
 
Sincerely,
 
Senator Michelle Hinchey
Senator Joseph P. Addabbo
Senator Jamal Bailey
Senator April Baskin
Senator Siela Bynoe
Senator Leroy Comrie
Senator Nathalia Fernandez
Senator Pete Harckham
Senator Shelley Mayer
Senator Monica Martinez
Senator Chris Ryan
Senator Jessica Scarcella Spanton
Senator James Skoufis
Senator Lea Webb
Senator Jeremy Zellnor
 
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