Last Updated on October 7, 2026 6:08 pm
RALEIGH — The North Carolina General Assembly has passed House Bill 3, the “Relief at the Pump Act,” which would immediately suspend the state’s 41-cent-per-gallon motor fuel tax through Nov. 30, 2026. The bill has been ratified and now goes to Gov. Josh Stein.
The House passed the bill Wednesday afternoon, and the Senate followed. Lawmakers then adjourned the special session.
If the full savings reach drivers at the pump, a 15-gallon fill-up would cost about $6.15 less, and a 20-gallon fill-up about $8.20 less. North Carolina’s average price for regular was $4.12 per gallon Wednesday, according to AAA. The average in the Asheville area was $4.08.
WHAT THE BILL DOES
- Suspends the motor fuel tax through Nov. 30, 2026.
- Appropriates money to hold harmless the funds that would have received the tax revenue. Supporters have pointed to the state’s Stabilization and Inflation Reserve as the source, at about $518 million per month.
- Waives enforcement of civil and criminal penalties through Dec. 31 for highway use of dyed diesel associated with farming and agricultural purposes.
- Exempts highway use of dyed diesel by certain users from the motor fuel tax through Dec. 31.
- Requires the Department of Revenue and the Department of Agriculture and Consumer Services to notify affected parties.
Rep. Mike Schietzelt said, “People are paying far too much to commute to work, drop their kids off at school, and run basic errands,” and noted that travel holidays are approaching.
THE COST
The motor fuel tax makes up about 40% of the state’s transportation revenue, and the N.C. Department of Transportation has estimated a 30-day suspension could reduce its funding by about $225 million. The Senate’s cost estimate for the bill is $362.3 million.
Gov. Stein said earlier this week that he is open to a suspension but wants the Department of Transportation held harmless. “We cannot allow our infrastructure to crumble,” he said.
OTHER STATES
Ohio and Georgia have also cut state gas taxes, and Indiana has passed a similar measure, according to reports.
WHAT HAPPENS NEXT
The bill is not law until the governor acts on it. If it is signed, state officials are expected to monitor whether retailers pass the savings on to consumers. Early voting begins about a week from now, and Election Day is Nov. 3.
WataugaOnline will update this story when Gov. Stein acts on the bill.
