North Carolina cuts state's 41-cent fuel tax through Thanksgiving, giving motorists relief at pumps

The Relief at the Pump bill was signed into law Friday

Published: October 9, 2026 10:51pm

(The Center Square) -

North Carolina lawmakers have joined in a bipartisan effort to provide some relief to motorists at the pumps by cutting the state's 41-cent gas tax.

Democrat Gov. Josh Stein signed the state legislative measure into law Friday, effective immediately and through Nov. 30.

Only one legislator, a Guilford County Democrat, was opposed to the legislation. In a special legislative session, the state House voted 111-1 and the Senate voted 41-0.

“Rising grocery, utility, and gas prices are making the costs too high for people across our state,” Stein said. “I am signing this bill to keep more money in people’s wallets, but this temporary relief is just one step. I remain committed to continuing to work with anyone who wants to make everyday living more affordable all year long – not just during election season.”

The cut will result in a loss of revenue used to help maintain highways through the state Department of Transportation, and lawmakers addressed that in the bill's language. 

The state’s Stabilization and Inflation Reserve account will replace the fuel tax revenue that the department's Highway Fund would otherwise receive during the suspension period.

An estimated $362.3 million is in play, says Rockingham County 13th term Sen. Phil Berger Jr. He also said the account to draw from has a balance of about $518 million available. First-term Republican state Treasurer Brad Briner, in published reports, said $11 billion in reserves means the amount would not negatively impact the state’s top-level credit rating.

House Speaker Destin Hall, R-Caldwell, said, “Hardworking North Carolinians need relief at the gas pump, and help is on the way. Years of responsible budgeting have put North Carolina in a position to provide meaningful relief when families need it most, and pausing fuel taxes is another way House Republicans are working to make our state more affordable for everyone.”

It is unclear how soon the prices at the pumps will drop. Also unclear is whether prices will be an exact 41-cent decrease.

Friday morning, AAA reported the state average at $5.98 for a gallon of diesel fuel and $4.09 for regular unleaded gasoline. National averages are $6.27 and $4.37, respectively. Thirteen states are lower for diesel fuel, 14 are lower for unleaded gasoline.

In a release, Wilson Republican Sen. Buck Newton said, “Elected officials are hearing from hardworking North Carolinians every day who are feeling the strain of rising fuel costs. For the last 15 years, Republicans in the General Assembly have been good stewards of your tax dollars, which allows us to provide you relief at the pump.”

Similar steps have been taken this year by Georgia, Indiana and Ohio.

Unlock unlimited access

  • No Ads Within Stories
  • No Autoplay Videos
  • VIP access to exclusive Just the News newsmaker events hosted by John Solomon and his team.
  • Support the investigative reporting and honest news presentation you've come to enjoy from Just the News.
  • Just the News Spotlight

    Support Just the News