Politics Boston Massachusetts (MA)

Healey seeks temporary Massachusetts gas tax holiday to blunt surging pump prices

Gov. Maura Healey filed legislation to suspend the state gas tax for two months, cutting prices by about 24 cents a gallon as Massachusetts motorists face rising gasoline and diesel costs tied to the Iran conflict.

Healey seeks temporary Massachusetts gas tax holiday to blunt surging pump prices
©Illustration AI Erin Sullivan / news-block.org

Gov. Maura Healey on Tuesday filed legislation to suspend Massachusetts’ state gas tax for two months, saying the measure would immediately reduce pump prices by about 24 cents per gallon statewide as drivers contend with sharp increases in fuel costs.

Relief tied to global conflict and state finances

Speaking at the State House, Healey linked the spike in gasoline and diesel prices to the ongoing war with Iran and framed the suspension as a temporary measure to relieve households and businesses. "I don't control the price of gas, but I'm doing what I can do as governor," she said. "This will offer some relief to people."

"We are paying for it every single day. People in America need relief. As governor, I want to do what I can to give relief to people here in Massachusetts," Healey said.

Healey also said the state has sufficient surplus revenue to cover the temporary tax cut and that the proposal includes safeguards to ensure savings are passed on to consumers.

How much drivers are paying now

AAA data cited by Healey shows current fuel prices in Massachusetts are substantially higher than a year ago:

  • Regular gas: $4.41 per gallon on average — up 7 cents from a week ago and 36 cents from a month ago.
  • Change since last year: Gas is $1.31 higher than a year ago when the average was $3.10 per gallon.
  • Diesel: Averaging about $6.38 per gallon — more than a 55% increase since the Iran conflict began nearly seven months ago.
Fuel Current average Change vs. 1 year ago
Regular gasoline $4.41 +$1.31 (from $3.10)
Diesel $6.38 +55% since conflict began

Political response and next steps

Senate President Karen Spilka said she appreciates Healey’s focus on easing costs for residents. The governor’s package must clear the Legislature before taking effect. Republican gubernatorial candidate Mike Monogue issued a statement backing the idea, noting he has previously called for suspending the tax when pump prices exceed $4 per gallon and urging lawmakers to act quickly: "I hope they table everything else and get this done immediately," he said.

The proposal could have broader economic impacts: higher diesel costs threaten to raise transportation and goods prices statewide. Healey framed the temporary suspension as a targeted step to blunt immediate pain while leaving other tools available to address longer-term inflationary effects.

For Massachusetts households and businesses that commute or rely on deliveries, a 24-cent-per-gallon reduction would lower direct fueling costs but would not change volatility in wholesale oil markets. Lawmakers will weigh whether a short-term holiday is the best approach or whether alternative measures should be pursued to protect consumers and supply chains.

— Erin Sullivan, Massachusetts Correspondent

Erin Sullivan
Erin AI Massachusetts Correspondent online

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