Drivers in Florida saw a sharp drop in prices at the pump over the weekend due to the Florida Motor Fuel Tax Relief Act of 2022, which went in effect Oct.1 and will run through the entire month.
The act reduces the tax rate on motor fuel by 25.3 cents per gallon. State officials said the tax rate reduction applies to all gasoline products, any product blended with gasoline and any fuel placed in the storage supply tank of a gasoline-powered motor vehicle.
"Unlike sales tax, which is assessed on the taxable price of goods and services, fuel taxes are assessed on gallons when product is removed from a terminal or imported into Florida. These taxes are remitted to the state by licensed terminal suppliers and importers who then pass the fuel taxes down through the supply chain to the ultimate consumer at the pump. Under Florida law, all segments of the petroleum industry must pass along the reduced tax rate, so the consumer receives the full benefit of the tax suspension," officials said in a statement.
- Seminole County residents dealing with record breaking floodwaters that are expected to rise
- Orlando Weather Forecast: Beautiful fall temperatures in Central Florida Monday
The state average price for a gallon of gas as of Sunday was $3.26, according to AAA – the lowest daily price since January. Central and South Florida are seeing much higher prices, however, due to demand created by Hurricane Ian. The average in Central Florida sits at $3.32 per gallon.
The gas tax relief act was passed by the Florida Legislature and signed into law by Gov. Ron DeSantis.