Fifteen New York state senators, led by Hudson Valley Democrat Michelle Hinchey, are telling Gov. Kathy Hochul it is time to give drivers a break. In a March 31 letter, they urged the governor to suspend the state’s gas and diesel taxes, arguing that a short tax timeout would cushion a sharp spike in pump prices tied to the war in Iran. The lawmakers, representing urban, suburban and upstate districts, pitch a temporary “gas tax holiday” as direct relief for commuters, farmers and small businesses. They point to New York’s own 2022 fuel tax pause as a ready-made playbook for quick savings at the pump.
Hinchey’s office posted the full letter and signer list in a press release on the New York State Senate website, which names the 15 co-signers and includes the March 31 appeal. In the release, Hinchey says “every penny we can save people matters” and urges Hochul to move quickly to ease what the senators describe as a statewide cost shock. The letter links their request to recent disruptions in global oil shipping and the rise in wholesale crude that has helped push retail prices higher.
What the senators are asking
The March 31 letter asks Hochul to temporarily suspend state sales and excise collections on motor fuel and diesel, the same levers the state pulled during the 2022 pause, and suggests the break could be set up with price triggers or a fixed end date. Citing AAA data, the lawmakers note that average New York pump prices in 2022 were lower than the recent surge they say has seen regular climb to $3.94 and diesel to $5.77 in some measures. The release stresses the hit to agriculture, manufacturers and tourism and highlights signers from the Hudson Valley, Long Island and suburban districts around the state.
How much would drivers actually save?
The state collects fuel revenue through a mix of cents-per-gallon excise and petroleum business taxes, percentage-based sales taxes and local add-ons, and the New York Department of Taxation and Finance publishes the statutory excise and petroleum business tax rates. As a point of comparison, Gov. Hochul’s 2022 announcement said the June to December 2022 holiday suspended certain state excise and sales taxes and shaved roughly 16 cents per gallon off prices statewide, with some counties adding local caps for extra savings. Any new pause would force lawmakers and the governor to decide how to replace the resulting transportation revenue shortfall or backfill it from other sources.
Why some experts and officials are wary
Evidence from the 2022 state gas-tax holidays suggests that tax breaks only partly reach consumers and often deliver short-lived relief. A Penn Wharton analysis of recent state gas-tax suspensions found that pass-through rates differed by state and that price cuts frequently faded before the holiday officially ended. At the same time, AAA’s weekly tracker shows national averages creeping back above $4 per gallon, a spike supporters say makes fast relief a political must. Balancing modest, short-term savings for drivers against lost revenue for road and transit projects is at the heart of the fight.
What happens next
The letter is now in the governor’s hands, and Spectrum News reported that it reached out to Hochul’s office for comment. Any suspension would require quick negotiations over budget trade-offs, and officials are already looking back to the 2022 holiday, which the governor’s office said delivered about $609 million in direct relief, as the fiscal and political blueprint the state might have to dust off.
