Updated 2:50 p.m.
State representatives today (Oct. 7) approved a measure suspending the state fuel taxes until Nov. 30. The State Senate is expected to pass a similar measure.
Both the State House and Senate reconvened in a special called session for the express purpose of lowering fuel costs for the state. The ongoing war in Iran caused prices to skyrocket earlier this year.
Georgia, Indiana and Ohio have taken similar steps.
Gas prices have increased an average of $1.26 since last year, according to AAA North Carolina. In Columbus County, regular unleaded went from $2.86 a gallon in 2025 to $4.05. Diesel went from $3.45 locally to $6. For Bladen County, Regular went from $2.85 to $3.95, and diesel from $3.48 to $6 on average.
Fuel taxes fund the Highway and Highway Trust Funds that finance the Dept. of Transportation in North Carolina. In a press release, Speaker of the House Destin Hall said the state’s Inflation Reserve will be used to fill the gap left by fuel taxes.
North Carolina consistently ranks around No. 11 in the nation for fuel taxes. Currently, 41 cents of every gallon is paid in taxes. The DOT reports that $1.92 billion in fuel taxes go to the Highway Fund every year, along with $636.4 million to the Highway Trust Fund, which is used for larger, longterm projects.
The bill also allows farmers to use dyed “tax free” offroad diesel on the highways without penalty. Diesel has been hit the hardest in terms of fuel costs, doubling since last year. President Donald Trump had already signed an executive order allowing the use of off-road diesel for agricultural purposes. Trump has also said that he may ask Congress to temporarily suspend the federal gas tax.
Disel prices have jumped from $3.48 in 2025 to $6, according to AAA Carolina.
Gov. Josh Stein said in Tuesday’s Council of State meeting that he was pleased the General Assembly was returning but said they should have met sooner. He also hinted that the action was purely political.
“I wish it didn’t take the election season to get this attention,” he said, “but for whatever reason, it’s happening, and that’s a good thing. And we need to not only be focused on this in the session immediately before the election, but it needs to be part of our daily work.
Stein previously directed the Dept. of Revenue not to enforce dyed diesel laws. He thanked the Highway Patrol for their assistance, noting that the Internal Revenue Service has also agreed not to add highway taxes to farmers using offroad diesel.
