States cut fuel taxes as U.S. pump prices head for a September record

U.S. drivers are paying an average of about US$4.48 a gallon for regular gasoline and US$6.45 for diesel, according to AAA, with September on track for a record as Hormuz disruption and high crude keep autumn prices elevated instead of easing.

California Governor Gavin Newsom suspended the state’s seasonal summer-blend gasoline requirement for the rest of the season so cheaper winter-blend fuel can be sold immediately; regular gas there averages about US$6.37 a gallon. Georgia Governor Brian Kemp declared a state of emergency and suspended the state’s motor-fuel tax for 30 days, removing 33.3 cents a gallon on gasoline and 37.3 cents on diesel, and eased commercial vehicle weight limits. Massachusetts is pursuing a temporary gas-tax holiday, while several states have relaxed dyed-diesel rules for farms.

President Donald Trump said Monday that fuel prices will tumble once the Iran war ends and has floated a temporary ban on U.S. diesel exports. Analysts warn an export curb could disrupt refining economics and eventually raise costs for refined products. Households already feel the spillover in freight, food transport and commuting.