VLO - New York State is the latest jurisdiction to suspend the gasoline tax

New York is the latest jurisdiction to remove gasoline taxes, with a suspension of the 16c / gallon charge going into effect Wednesday. Nationwide the price at the pump averaged $4.67 Wednesday, with New York State averaging $4.93. Connecticut, Georgia and Maryland have taken similar measures; however, the federal government has not yet taken steps to suspend the 18.4c per gallon federal tax. It will be interesting to see how tax savings flow in coming months; in an oversupplied market, the tax savings should accrue to consumers, as any refiner or retailer attempting to capture the savings through sustained higher prices would be undercut by refiners or retailers with excess capacity. However, the gasoline market is anything but oversupplied, suggesting that the lower government take could accrue to refiners like PBF (PBF), Valero (VLO) and Philips (PSX).

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New York State is the latest jurisdiction to suspend the gasoline tax