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Dunleavy asks lawmakers to suspend Alaska’s fuel taxes


Alaska residents could pay less for gas if the legislature approves a proposal by Gov. Mike Dunleavy.

The governor is asking lawmakers to suspend motor fuel taxes until June 30, 2023. The state adds an 8-cents per gallon motor fuel tax and a smaller tax is charged for aviation and watercraft fuel, according to the governor’s office.

While consumers are paying more at the pump, the state’s coffers are benefitting from the higher fuel prices. The state receives significant revenue from oil.

“The misery wrought from these worldwide events is, indirectly, propelling the revenues to Alaska’s state government,” Dunleavy wrote in a letter to lawmakers. “Oil prices are at record levels, and, unlike the high oil price environment of 2007-2014, this climb is occurring with concurrent increases in all costs of living.”

The governor is specifically asking lawmakers to amend House Bill 104 which would have increased the fuel tax from 8 cents to 16 cents per gallon. The bill, sponsored by House Democrats, was introduced in the 2021 legislative session but has not advanced.

Dunleavy’s proposal comes a week after the House majority proposed a $1,300 payment to state residents to deflect high energy costs and inflation.

The money would be in addition to the state’s Permanent Fund Distribution (PFD).

Dunleavy has not said if he supports the energy relief checks.

This article was originally posted on Dunleavy asks lawmakers to suspend Alaska’s fuel taxes

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