Fuel costs are down considerably from this summer's peak but are still well above last September's averages
The Florida Motor Fuel Tax Relief Act of 2022, passed this spring by the Florida Legislature and signed into law by Gov. Ron DeSantis in May, will reduce the state tax on motor fuel by 25.3 cents per gallon beginning Saturday, Oct. 1.
The 25.3 cents per gallon reduction will apply 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 a 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.
The average price of unleaded statewide has fallen significantly since peaking at $4.89 a gallon in June but remains well above last September’s average.
“Reducing the state tax on fuel is really going to help Florida’s small businesses,” NFIB State Executive Director Bill Herrle said. “The cost of fuel affects the cost of everything else, from raw materials to what businesses have to charge their customers. Inflation continues to weigh on small businesses, but the Florida Motor Fuel Tax Relief Act will relieve some of that pressure.”