Seasonal Gas Tax Suspension Proposed in AZ

Willoughby Pushes Seasonal Gas Tax Relief for Maricopa and Pinal Counties

Arizona drivers in Maricopa and Pinal counties could see relief at the pump during the most expensive months of the year under a new proposal aimed at suspending the state gas tax on a costly summer fuel blend.

Rep. Julie Willoughby has introduced legislation that would temporarily eliminate Arizona’s 18-cent gasoline tax on Cleaner Burning Gasoline sold in those two counties from May through September. The proposal targets fuel costs that consistently spike during the summer months due to federal air-quality requirements that limit which gasoline blends can be sold in the Phoenix metropolitan area and surrounding regions.

Supporters say the measure is designed to give families immediate financial relief while lawmakers continue to pursue longer-term solutions to fuel affordability.

Why Gas Costs More in Central Arizona During the Summer

Each summer, Maricopa and Pinal counties are required to use Cleaner Burning Gasoline, a specialized fuel blend mandated under federal air-quality rules. Unlike standard gasoline used elsewhere in Arizona, this blend is produced in limited quantities and refined primarily in California.

That restricted supply, combined with higher production and transportation costs, makes Cleaner Burning Gasoline the most expensive fuel sold in the state during the summer driving season. As demand rises and supply tightens, prices at the pump increase—often sharply.

“Because of federal requirements, families in Maricopa and Pinal counties are forced to pay more at the pump than the rest of Arizona,” Willoughby said. “During the summer, these counties can only sell Cleaner Burning Gasoline—a boutique fuel blend refined in limited quantities, primarily in California. That limited supply drives up costs, and Arizona drivers pay the price.”

Rising Prices and Growing Supply Concerns

Fuel cost pressures have intensified in recent years, according to Willoughby, who pointed to regional and national trends that continue to push prices upward.

“In 2023, Phoenix drivers paid higher gas prices than Los Angeles,” she said. “As California refineries shut down, supply constraints will increase—pushing prices higher at a time when families are struggling with rising costs.”

Those refinery closures are expected to further restrict access to Cleaner Burning Gasoline, increasing competition for already limited supply during peak summer months. Arizona currently ranks as the sixth most expensive state in the nation for gasoline, adding urgency to calls for relief.

Supporters of the proposal argue that suspending the state gas tax during the summer months would offer immediate, tangible savings to drivers who have little choice over which fuel they can purchase.

Balancing Tax Relief With Infrastructure Needs

One concern often raised with gas tax reductions is their impact on transportation funding, particularly for local governments that rely on fuel tax revenue to maintain roads and infrastructure.

To address that issue, the proposal includes a provision to hold local governments harmless during the tax suspension. The measure would ensure that cities, towns, and rural communities do not lose funding from the Highway User Revenue Fund while the exemption is in effect.

Backers say this safeguard is critical to ensuring that short-term tax relief does not come at the expense of long-term infrastructure maintenance.

Federal Rules Remain a Barrier to Broader Reform

Arizona lawmakers have previously worked with federal officials to explore alternative fuel blends that could meet air-quality standards at a lower cost. So far, those efforts have been blocked by existing federal regulations.

While the new proposal focuses on state-level relief, Willoughby said broader change will require action from Washington. Alongside the gas tax suspension, she is advancing a separate measure urging Congress to suspend the federal gas tax on Cleaner Burning Gasoline during the same summer months.

“We’ll continue pursuing long-term solutions, but Arizona families need relief now,” Willoughby said. “That’s why I’m proposing this temporary suspension from May through September and urging Congress to do the same at the federal level.”

A Seasonal Approach to Cost-of-Living Pressures

Supporters frame the proposal as part of a broader effort to address affordability challenges facing Arizona families, particularly during high-cost summer months when fuel prices ripple through household budgets.

By targeting a specific fuel requirement and a defined timeframe, the measure aims to provide relief without permanently altering Arizona’s transportation funding structure.

If approved, the seasonal suspension would apply only to the Cleaner Burning Gasoline sold in Maricopa and Pinal counties, leaving fuel taxes elsewhere in the state unchanged.