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Economist says gas tax holiday end likely won't lead to overnight spike

Gas
Posted at 10:14 PM, Oct 31, 2022
and last updated 2022-10-31 23:53:57-04

TAMPA, Fla. — When it comes to the rush to grab gas before Florida's gas tax holiday ends—all Luis Rios could do was laugh.

"I think now 'hey let me go and fill it up.'" he chuckled.

It's a light-hearted approach to the end of some small relief at the pump.

Though some at the pump said, even with it, they've still had to make sacrifices.

"Yeah I got a truck, so I don't much as much around as I used to," said Alfred Naranjo.

Come Tuesday, the fear is that much of the 25-cent tax gas stations have to pay the state will be passed on to drivers again. But Florida Gulf Coast University Economist Victor Claar said he doesn't think we'll see a drastic shift overnight.

"I don't think any gas station operator wants to be perceived, on the day after Halloween, as throwing us another trick and raising the prices of a gallon of gas by the entire amount of that tax that's been reinstated," Claar said.

Instead, he said most gas stations will likely gradually add the tax amount back into our prices. Claar also added that he's optimistic about the possibility of another tax break for Floridians.

"I think it's possible that in Florida, because of the immense popularity of gas tax holidays, we might see more of them," he said.

But what about longer-term solutions?

On Monday, President Biden called out oil companies that have seen record profits during this current gas hike and claimed they haven't done much to help boost domestic production of gas.

He called on them to help lower prices or face financial consequences.

"They're going to pay a higher tax on their excess profits," Claar said.