Could Michigan See Relief At The Gas Pump Soon?
There are rarely times we all agree on something, but when it comes to gas prices lately, we all agree that the prices suck.
Currently, Michigan is seeing record high gas prices due to varying reasons including the Russian / Ukraine conflict. Previously, Michigan's record high price average per gallon was in May 2011, when regular unleaded was priced at $4.26. We are currently hovering at that price, knowing it will likely go up again in the upcoming days, so it can feel like there is no hope in sight.
Earlier this week, Michigan Governor Gretchen Whitmer joined 5 other state leaders in asking for a 18-cent relief in taxes in our gas prices, and The Michigan House took the lead by passing legislation which will temporarily pause Michigan's 27-cent state gas tax. Next week this legislation moves to the upper house, which also expects to pass the measure. And while this seems great, it could cause us problems down the road.
What is Michigan's Gas Tax used for?
In quick words - fixing Potholes. Revenue from Michigan's 27-cent excise tax on gas goes into the state's transportation fund, which is divvied up among state trunk lines, cities and villages, and county road commissions.
And while this is only a six month pause, that could be a massive loss for our roads. For MDOT, one penny of gas tax generates $17 million annually in revenue, which means Michigan would potentially lose up to $200 million in revenue during that six months, that would be used to help maintain our roads.
When Could We See A Price Drop At The Pump?
The second half of the legislation is expected to be voted on early next week, after that it would go to Gov. Whitmer's desk to be signed into law. So reasonably, it would be unlikely we'd see an immediate change next week, but possibly by the end of the month we may finally see a drop in gas prices.
While relief may be on the way, it's still a couple of weeks down the line. So if you need help saving money at the pump, here are a few helpful tips.