WASHINGTON: A steep rise in fuel prices close to the November midterm elections has forced about one-third of US states to cut fuel taxes or ease diesel restrictions, as officials seek to limit the impact of the war with Iran on consumers.

With voters already concerned about the cost of living, the surge in gasoline and diesel prices has created an immediate political problem for governors and state lawmakers. The price at the pump is one of the most visible ways in which the war is affecting Americans’ daily lives.

According to the latest AAA Fuel Prices report, overall gasoline prices remain the highest they have ever been for this time of year. AAA said the national average dropped nearly seven cents in the week ending Oct 1 to $4.41 a gallon, following a record-setting September in which the monthly average reached $4.33 — 50 cents higher than the previous September record set in 2023.

AAA has attributed the continuing price pressure to volatility in crude-oil markets linked to the conflict in the Middle East and instability in shipping through the Strait of Hormuz.

Ohio is among the states responding most directly. Its lawmakers on Wednesday approved a 90-day suspension of state gasoline and diesel taxes, winning broad bipartisan support. The measure was signed by Governor Mike DeWine.

Several states have moved during the past week to reduce fuel costs, while others have delayed tax increases or relaxed rules affecting certain fuel users. Ohio’s move also illustrates the political sensitivity of the issue.

Patrick De Haan, head of petroleum analysis at GasBuddy, told Fox Business that elevated gasoline prices before the November elections could give Republicans the “same fate” Democrats experienced in the 2022 midterms, when gasoline prices reached an average of about $5 a gallon.

Republicans currently hold both chambers of Congress and are defending those majorities in the November elections. High fuel prices could therefore become an electoral liability as voters remain focused on the cost of living.

Georgia has resumed a 30-day suspension of its motor-fuel tax. Indiana has extended an existing fuel-tax holiday and eased rules governing tax-exempt diesel. Utah has reduced its state gasoline tax by six cents a gallon through the end of the year.

Illinois and Kentucky have delayed or frozen scheduled increases in their motor-fuel taxes, preventing further increases at a time when motorists are already paying more.

California has adopted a different approach, allowing an early switch to a cheaper winter-blend gasoline in an effort to increase supplies and lower prices. The measures also reflect pressure on farmers and transport operators, for whom fuel costs can quickly translate into higher costs for food and other goods. Alabama, Arkansas, Louisiana, Missouri, Nebraska, North Carolina, North Dakota, Oklahoma and Texas have temporarily relaxed restrictions or enforcement involving dyed diesel, a tax-exempt fuel normally reserved for agricultural, commercial and other specified uses.

Texas is providing fuel-related relief, but its measures are largely limited to commercial and agricultural diesel rather than gasoline used by ordinary motorists.

For state governments, cutting fuel taxes carries a cost of its own. Motor-fuel taxes provide revenue for roads and other transportation infrastructure, and suspending them can leave governments with less money for those programmes.

There is also uncertainty over how quickly a tax reduction reaches consumers. A temporary tax holiday does not necessarily translate into an equivalent reduction at every pump because fuel already in the supply chain may have been taxed before the suspension takes effect.

The measures target different parts of the fuel market, but they share a common purpose: to provide relief to motorists, farmers and businesses facing unusually high energy costs.

Federal lawmakers have floated proposals for a nationwide gasoline-tax holiday, but no broad federal suspension has been enacted. The response has instead largely been left to the states, creating a patchwork of relief measures.

New York has not suspended its state fuel taxes in response to the latest price surge. Its officials have instead focused on other forms of household relief, including efforts to negotiate a freeze in National Grid gas rates to limit higher home-heating costs.

Virginia, Maryland and the District of Columbia are also not currently offering state-level gasoline-tax breaks, although proposals are being debated in some jurisdictions.

The political consequences will vary from state to state. Where fuel taxes have been suspended or reduced, incumbents can point to immediate measures aimed at lowering costs. Elsewhere, officials face questions about why similar relief has not been provided.

For Democrats, the issue provides an opportunity to criticise the administration over the economic consequences of the Iran war. Republicans, meanwhile, face pressure in states they govern to show that they can protect consumers from higher fuel costs.

Published in Dawn, October 5th, 2026