- Governor Maura Healey and Lt. Governor Kim Driscoll
Media Contact
Jacqueline Manning, Press Secretary
BOSTON — Governor Maura Healey today announced that she will file legislation to suspend Massachusetts’ gas tax for two months, providing immediate relief for residents and truckers as President Trump continues to wage war in Iran with no end in sight. Today in Massachusetts, the average cost of a gallon of gas is $4.41 and the cost of a gallon of diesel is $6.40, up from $2.90 for regular and $4.20 for diesel in February 2026 before the war started.
President Trump’s war in Iran has driven up oil and gas prices and created new disruptions across global energy markets. As the conflict has disrupted major shipping routes and energy infrastructure in the Middle East, families and businesses across the country are paying more for gas, diesel and the goods they rely on every day.
In her upcoming closeout supplemental budget, Governor Healey will propose a temporary suspension of the gas tax to help lower costs for Massachusetts residents. Under the proposal, the state would suspend its 24-cent-per-gallon tax on gas and diesel for two months beginning seven days after the bill is signed. The legislation would require gas stations to lower prices to reflect the suspended tax so that drivers are able to see the savings at the pump.
“The skyrocketing price of gas is a direct result of Donald Trump’s actions. He chose to send us into this reckless war in Iran with no goals, no plan, and he refuses to get us out. Now everyone is paying the price. I’m calling on the President to do the right thing - end this war, bring our soldiers home, and lower the price of gas for every single American,” said Governor Maura Healey. “Because Donald Trump refuses to act, I’m doing what I can to lower the cost of gas in Massachusetts. Suspending the gas tax will provide some much-needed relief for Massachusetts families who commute every day, who are planning travel, and for our truckers because sky-high diesel prices drive up costs for all of us. We will do this without impacting the transportation investments we need to improve public transportation and fix our roads and bridges.”
“People are already dealing with high costs, and rising gas prices put even more pressure on family budgets and small businesses,” said Lieutenant Governor Kim Driscoll. “This is targeted relief that will help people while making sure our roads, bridges and public transportation continue to have the resources they need.”
The Governor’s proposal takes a targeted approach to providing immediate relief while protecting transportation investments. Under the proposal, retailers would be required to reflect the temporary tax suspension in the price consumers pay at the pump, and gas station owners would be protected from losing money on fuel sold at the reduced price.
The Administration estimates that the two-month suspension would provide approximately $120 million in relief. The proposal would replace the lost gas tax revenue with projected, unbudgeted Fiscal Year 2027 Fair Share surtax collections, allowing residents to see savings at the pump without reducing funding for roads, bridges or public transportation.
Nearly all Massachusetts gas tax revenue is dedicated to the Commonwealth Transportation Fund, which supports transportation operations and infrastructure. Using Fair Share revenue to cover the temporary loss would protect those investments while providing immediate relief to drivers.
The suspension would be temporary and limited to two months, providing relief during a period of unusually high energy prices without creating an ongoing commitment.
The proposal builds on Governor Healey’s ongoing work to lower energy costs for Massachusetts residents. Governor Healey has delivered hundreds of millions of dollars in direct energy bill relief, including cutting residential electric bills by 25 percent and gas bills by 10 percent for two months last winter; brought new sources of lower-cost energy online, including hydropower that is expected to lower bills by about $50 million each year; activated Vineyard Wind contracts projected to save customers $1.4 billion; opposed utility rate increases and unnecessary charges; and filed energy affordability legislation projected to save residents and businesses more than $13 billion. The Administration will continue pursuing every available tool to lower energy costs and put money back in people’s pockets.
Governor Healey has also worked to make transportation more affordable while investing in the roads, bridges and public transit that residents rely on. The Administration has expanded and launched new MBTA discounts, including 50 percent off monthly Commuter Rail passes through November, $1 weekend companion fares, free transfers between buses and the subway within a two-hour window, consistent bus fares across the system and free bus rides for Massachusetts residents age 75 and older. The Administration has also increased Chapter 90 funding to a historic $300 million a year for local roads and bridges and supported the repair or replacement of 650 bridges and the repair and reconstruction of more than 420 miles of roadway across Massachusetts.
Statements of Support
Kevin Weeks, Executive Director, Transportation Association of Massachusetts (TAM):
“The Transportation Association of Massachusetts (TAM) thanks Governor Healey for proposing a temporary suspension of the state tax on diesel fuel, providing meaningful relief at a time when fuel costs are placing significant pressure on the trucking industry and the businesses and residents it serves. Trucking is the backbone of our economy. The trucking industry appreciates the Governor’s recognition that temporarily suspending the diesel tax in the months of November and December results in a reduction of costs for businesses and Massachusetts families when they need it most.”
Cindy Brown, Chief Executive Officer, Boston Duck Tours:
“With fuel prices fluctuating between $2.50 and $5.00 per gallon over the past five years, fuel costs remain a significant and unpredictable operating expense for Boston Duck Tours. A gas tax holiday for our biodiesel amphibious vehicles would help offset rising fuel costs and provide relief during the upcoming fall season.”
Jon B. Hurst, President & CEO, Retailers Association of Massachusetts:
“Consumer spending represents 70% of our economy. The Healey/Driscoll Administration gas tax holiday proposal is progressive, timely and welcomed; and it will go a long way to help our working families and the small businesses which serve them. When the cost of living is high, it is important that every level of government prioritize efforts to keep more disposable income in the hands of our consumers, so they may be better able to invest right back into our local economy.”
Tim Murray, President and CEO of the Worcester Regional Chamber of Commerce:
“High fuel prices put added pressure on businesses, workers and families, particularly when the cost of moving goods and getting to work is already rising. A temporary gas tax suspension can provide immediate relief while protecting the transportation investments that are critical to economic growth. This is a practical step to help lower costs and support employers and residents across Massachusetts.”
Greg Reibman, President & CEO, Charles River Regional Chamber of Commerce:
“It's unfortunate we've come to this. But we appreciate the Healey-Driscoll administration's willingness to act — helping our residents and neighborhood small businesses weather a moment when sky-high costs threaten our economic vitality. Just as important: this relief is temporary. It won't come at the expense of the infrastructure investments our region depends on.”
Warren Shaw, President, Massachusetts Farm Bureau Federation:
Transportation is a major cost for Massachusetts farms. We use fuel to bring products to market, pick up supplies and make deliveries. Temporarily suspending the state gas and diesel tax would provide immediate relief and help farms manage a difficult financial situation. We appreciate the Governor recognizing how high fuel prices are impacting our farms.
Edgard Fayad, President, The New England Service Station and Automotive Repair Association (NESSARA):
“Gas station owners see every day how higher fuel prices affect families and small businesses. A temporary gas tax suspension can provide meaningful relief at the pump, and it’s important that it be structured so those savings reach drivers without putting independent station owners in a difficult position because of fuel they already purchased. We appreciate that this proposal addresses both sides of that equation.”
Chris Pappas, President and CEO, Massachusetts Lodging Association:
“Travel and tourism are a major part of the Massachusetts economy, and the cost of getting around matters to both visitors and the businesses that serve them. Providing temporary relief at the pump can make it more affordable for families to travel while protecting the transportation investments our industry relies on. We appreciate Governor Healey’s focus on lowering costs for residents and visitors while continuing to support Massachusetts’ tourism economy.”
Brooke Thomson, President and CEO, Associated Industries of Massachusetts (AIM):
Affordability is the defining issue for Massachusetts residents and businesses in 2026, and suspending the gas tax would provide immediate relief,” said AIM President and CEO Brooke Thomson. “For workers, that means lower commuting costs; for businesses, it means reducing the cost of moving goods and getting innovative products to market. This is especially important for AIM's many members in less populated areas of the commonwealth. Any relief for commuters and businesses at this time is something AIM supports exploring.
Nancy Gardella, Executive Director, North of Boston Convention and Visitors Bureau:
“The North of Boston Convention and Visitors Bureau supports Governor Healey’s efforts to provide targeted tax relief that helps ease cost for Massachusetts residents and businesses. Temporarily suspending the gas tax during the holiday season can also provide a welcome boost to the visitor economy by making it a little more affordable for families to get in the car, explore messages, visit friends, and relatives, and enjoy the many holiday experiences our community have to offer. North Of Boston, that means more opportunities for visitors to experience our downtown, restaurants, shops, attractions, cultural organizations, and holiday of events and more visitor blending flowing directly to local businesses and communities. Tourism is an important economic driver and measures that make it easier and more affordable for people to travel can help keep Massachusetts residents exploring and spending right here at home”
Boston Taxi Network:
"Fuel is one of the biggest everyday expenses for taxi drivers, and when gas prices rise, drivers feel it immediately. Any relief at the pump can make a real difference for the people who are out on the road every day serving residents, workers and visitors across Boston. We appreciate efforts to help lower those costs and support the drivers who keep our city moving."
Warren Shaw, President, Massachusetts Farm Bureau Federation
“Transportation is a major cost for Massachusetts farms. We use fuel to bring products to market, pick up supplies and make deliveries. Temporarily suspending the state gas and diesel tax would provide immediate relief and help farms manage a difficult financial situation. We appreciate the Governor recognizing how high fuel prices are impacting our farms.”
John Galvin, CEO and President, AAA Northeast
"We believe Governor Healey's proposal for a temporary gas tax suspension strikes a prudent balance that will provide near-term relief for consumers while preserving the Commonwealth's longer-term transportation priorities that are supported by the gas tax, including infrastructure improvements that enhance safety for all."
###
Media Contact
