Should SC pause its gas tax? Lawmaker to propose relief as prices rise at pump
As motor fuel prices surge around the country, at least one lawmaker has a proposal to offer South Carolinians some temporary relief — a pause in the state’s gas tax.
State Sen. Russell Ott, D-Calhoun, said he intends to file a resolution this week that would suspend the state’s 28 cents per gallon levy on motor fuel for 30 days, according to a news release. If gas prices don’t go down 15%, the pause could automatically renew, Ott said in an interview Monday.
Gas prices skyrocketed across the U.S. this month after the war in Iran disrupted oil supply chains.
“I’ve continued to hear from constituents, from folks all across the state, and they’re worried,” Ott said. “They’re concerned. This is something that, clearly, they didn’t budget for. And so I think it’s something the General Assembly can do.”
Average gas prices have gone up in South Carolina by about a dollar in a month, according to AAA fuel price estimates. South Carolina’s average gas price was $3.65 a gallon Monday, while a month ago the average cost was $2.61.
South Carolina’s gas tax pays for infrastructure upgrades around the state, including road, bridge and paving projects. In January, the tax raised $91 million, so a pause could cost the state millions of dollars as it looks to shore up more funding for South Carolina Department of Transportation.
“A suspension of the gas tax would impact SCDOT projects and programs unless that money is replaced with another source of funding,” a spokesperson for the state Department of Transportation wrote in an email. The extent of the impact would depend on other factors, like how long the suspension lasts.
Ott said he would file a one-year budget item to backfill any money the state Department of Transportation loses from the suspension with funding from reserves.
“I’m not looking to take away road funding at all,” Ott said. “That’s not the point of this. This is to simply give relief and then be able to use different pots of money to backfill it and give people some temporary relief while gas prices are elevated.”
If the bill passes, South Carolina would not be the first in the country to pause its gas tax amid rising prices. Georgia Gov. Brian Kemp signed a 60-day suspension of the state’s gas tax Friday.
State Rep. Mark Smith, R-Berkeley, also said he would file a bill to pause the gas tax for 30 days in a news release. Smith is running for U.S. Rep. Nancy Mace’s Lowcountry House seat.
Gov. Henry McMaster’s office did not offer an opinion on the proposal when asked Monday, but he will “review the legislation should it reach his desk,” a spokesperson wrote in an email.
This story was originally published March 23, 2026 at 11:41 AM.