‘we Have a Problem,’ Lawmakers Say, Urging the Suspension of the State’s Gas Tax!


(WOOD) – GRAND RAPIDS, Mich. — Drivers may soon see some respite at the pump, as Republican lawmakers suggest suspending the state’s motor fuel tax temporarily.

This comes as the average price of gas in the United States reached an all-time high this week, owing in part to the Russia-Ukraine crisis.

“I’m not shocked, as I’ve been keeping up with the news.” I’m actually fine with paying it. I wish there was more we could do to help the people of Ukraine,” said Beth Whaley, a Grand Rapids resident who sat at the pump.

Republican state leaders stated Wednesday that they intend to expedite a bill to the governor’s office that would temporarily eliminate the state motor fuel tax that drivers pay with each gallon of gas they purchase. The objective is to reduce the total cost of gasoline that drivers pay at the pump.

“We are in the midst of a gas pricing catastrophe. Therefore, let us make an attempt to achieve something,” said Rep. Bradley Slagh, R-Zeeland.

At $4.25 cents a gallon, the average price of petrol in many Grand Rapids stations, drivers pay approximately 68 cents in taxes. Around 22 cents goes to the state sales tax, around 18 cents to the federal government, and around 27 cents goes to the fixed-cost motor fuel tax.


Gas Tax


“I believe it is a fantastic idea, as long as the financing does not come from other excellent programmes, such as education,” Whaley stated.

The money collected at the pump helps pay for essential services such as roads, infrastructure, and public safety. The vehicle fuel tax fund contributes approximately 40% of the Michigan Transportation Fund to the Kent County Road Commission.

According to Slagh, Republicans intend to offset any revenue loss associated with the suspension of the motor fuel tax using federal surplus funds.

Gov. Gretchen Whitmer would not indicate if she would sign the bill if it reached her desk, but she did not appear enthusiastic about the notion.

Michigan’s Legislature Has Begun Voting to Suspend the State’s Gas Tax!

“The idea they’re discussing jeopardizes $4 billion in federal funds that we need to invest in schools, public safety, skills training, and infrastructure, and that makes little sense in the environment that we’re all navigating,” Governor said during a zoom call interview from Washington. “However, if we can find common ground on providing aid to those in need, I’m all in.”

While local petroleum representatives express anticipation for a fall in the price of oil, the tax cut now being offered does not guarantee relief.

“At the moment, the breakeven price I estimated is approximately $4.45 per gallon. The majority of retailers in your market charge around $4.25. Thus, merchants, in general, are selling gasoline at a discount to their costs,” said Mark Griffin, president of the Michigan Petroleum Association and the Michigan Association of Convenience Stores.


Gas Tax


Griffin stated that MPAMACS represents over half of the state’s 4,800 gas station owners. Additionally, MPAMACS purchases and delivers fuel to stations located throughout Michigan.

While the average client purchases 12 gallons of petrol per week, his organization purchases over 2,500 gallons per day per site, and the cost per gallon has increased by approximately $1.20 since mid-February.

Griffin estimates that the majority of owners get 70% of their revenue from the things sold inside the convenience store. According to him, most stations make more money selling a single bottle of water than they do charging a car to fill up their tank.


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“While the burden we bear is substantial, the 27 cents they’re proposing to eliminate is the state vehicle fuel tax, which would surely help. I cannot guarantee that every shop — the second it goes into effect — will be able to reduce their pricing by 25 cents when they are already selling 25 cents below market,” Griffin explained.

Griffin asserts that even without the addition of the gas tax if the conflict continues to drive the overall price of oil higher, the price per gallon will stay quite high. According to him, many station owners continue to hope for cheaper costs for the sake of their customers.

“Overall, it’s a fantastic concept if we can do this since, all other factors being equal, it would result in a 27-cent reduction in the price of gasoline. “That is something we would like to see happen,” he added.

If state lawmakers and the governor agree to suspend the gas tax temporarily, it would remain in effect until October.

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