Gas tax break, or waste?

The state needs to ensure that the gas tax break meant for consumers isn’t just a windfall for sellers.

Whether you think the state of New York’s move to suspend some of its fuel taxes is smartly targeted consumer relief or an election year sop to voters, here it is: From now through the end of the year, New York and any of its counties that opt in will forgo hundreds of millions of dollars to save drivers a few bucks — supposedly.

If we sound skeptical, we are. An oil industry that has lately been profiting handsomely — “obscenely” might be a better word — may well figure out a way to turn this gas tax holiday into a windfall of its own, leaving consumers paying as much as they would have anyway.

Fuel prices have spiked dramatically since the pandemic, rising upstate from a statewide low in May 2020 of $2.08 to $4.93 as of Wednesday morning. The main reasons are higher demand as more people drive again, a tight supply as gas companies take their time ramping up production, and the internationfill-up. al backlash against Russia, one of the top three global oil producers, over its invasion of Ukraine.

It’s as if Big Oil put a siphon in motorists’ pockets and sucked out enormous amounts of money. In the first quarter of this year, Exxon and BP reported multi-billion earnings that were at least double what they were a year earlier; Shell was three times higher and Chevron was more than fourfold.

So as part of the state budget, lawmakers and Gov. Kathy Hochul agreed to suspend a total of 16 cents a gallon in taxes at the pump. Some counties, including Saratoga and Schenectady, have also suspended their sales tax on gas prices over $2 a gallon. It amounts to around $2.50, give or take, on 15-gallon Not much, really, but it lets politicians running for office say they did something, and hope voters are too grateful to bother doing the math.

But this is only a boon, however measly, if it’s passed on to consumers. If retailers just pocket the difference, it means nothing. And it’s not too hard to do that, considering that the average motorist isn’t in a position to figure out what drives the price of gas on any given day. Who’s to say the gas station didn’t have to pay more for a gas delivery?

Well, the state should be able to say, one way or another. New York is giving up a lot of revenue — money that taxpayers, somewhere down the line, may well have to make up . The state should put some resources into monitoring global prices, delivery prices and pump prices to get an idea of whether consumers are seeing this intended benefit or not, and whether there’s a case to be made for price gouging.

And if it turns out this is all in vain, the Legislature would be advised to be ready to return to Albany and at least stop a wasted effort, however well-intentioned it may be.