The tax holiday is expected to begin as early as next week.

The next time you fill up at the gas station, you might not have to pay as much. Governor Larry Hogan and the Maryland General Assembly have come to an agreement on legislation that would pause state collection of gasoline and diesel fuel for 30 days.

The fast-tracked bill saves anyone buying gas in the state of Maryland about 37 cents per gallon. The full body is expected to approve the bill by Friday, March 18, and then it would go to the governor for his signature. Once the bill is passed, it could take a couple of days to see the change at the pump.

The price of gasoline has surged in the past two weeks due to supply constraints caused by the Russian invasion of Ukraine.

The price of a barrel of oil surged to $130 on March 8, the highest price recorded since 2008. In Maryland, the spike has driven up the cost of a gallon of unleaded gas to $4.31, the highest ever recorded, according to AAA. The cost of diesel fuel is even higher at $5.25 per gallon. Last year at this time, a gallon of gas was only $2.80.

Higher fuel costs are expected to push up prices on food and household goods, already high from supply chain issues created by the pandemic.

State and local lawmakers around the country have also proposed a holiday on the federal gas tax which would amount to a savings of 18.3 cents on regular gas and 24.3 cents on diesel. Federal fuel taxes are used to fund repairs on infrastructure including roads and bridges.

The gas tax holiday in Maryland will be covered by funds from a $7.5 billion surplus generated by sales tax and COVID relief funding.

It will take a few days before drivers see a difference at the gas station, but until then there are other ways to boost your savings. Use an app like Gas Buddy to find the lowest price and maximize your savings by using rewards cards and bonus points from grocery and convenience stores.

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