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State leaders resist gas tax holidays as US gas price averages $3.79 a gallon

Gas prices average $3.79, up 88 cents in a month. State leaders resist tax cuts; Democrats push federal gas tax suspension amid Iran war.
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State leaders resist gas tax holidays as US gas price averages $3.79 a gallon
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AAA reported Tuesday a gallon of regular gas now averages $3.79 in the U.S., up seven cents from Monday. Gas prices are now 88 cents higher than a month ago, according to AAA data.

Most state leaders appear disinclined to grant gas tax holidays. Some say they are unsure how much doing so would help consumers.

State gas taxes vary by state. Alaska has the lowest gas tax at 8.95 cents per gallon, while Hawaii has the next lowest rate at 18.5 cents per gallon. California has the highest gas tax at 70.9 cents per gallon.

A handful of states charge a percentage on gas receipts rather than a flat amount per gallon.

RELATED STORY | Gas and travel prices could continue to spiral as tanker traffic stalls near Iran

One reason states are apprehensive about relaxing gas taxes is that it's unknown how long the war with Iran will continue, threatening oil supplies.

Although state gas tax efforts are stalling, some are proposing relaxing the 18.4 cents-per-gallon federal gas tax. Democratic Sens. Mark Kelly and Richard Blumenthal released legislation that would eliminate the federal gas tax until Oct. 1.

“This legislation temporarily suspends the federal gas tax, lowering high gas prices squeezing consumers and bringing much needed financial relief to American families. Trump’s war of choice with Iran is driving up gas prices across the country—and Americans shouldn’t have to bear the additional economic burden of Trump’s reckless decision making. With the Gas Prices Relief Act, we address rising costs plaguing Americans and ensure they are not footing the bill for Trump’s war with Iran,” said Blumenthal.

RELATED STORY | Iran war pushes gas prices higher as Trump urges allies to help protect shipping routes

Brent crude continues to hover around $100 a barrel.

Some analysts expect high gas prices to push up the cost of other products.

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