LOGAN – Utah’s gas tax will be reduced by 15 percent beginning July 1, providing direct savings to families every time they fill up at the pump, according to state officials.
“Utah is choosing an abundance mindset,” Gov. Spencer Cox explained at a Capitol Hill ceremony on Feb. 23. “That means we don’t wait for problems to hit families at the pump …
“We build the partnerships and infrastructure that keep life affordable and our state resilient,” he added.
Cox’s remarks came as state leaders and industry partners endorsed House Bill 575 (Fuel Tax and Supply Amendments) recently passed by the Utah Legislature and announced a strategic agreement to enhance fuel supplies, support refining capacity and reduce the state gas tax to provide direct relief and make life more affordable for Utah families.
As originally proposed by Rep. Cal Roberts (R-Draper), H.B. 575 would have taxed state refineries to fund the reduction of the Utah gas tax for consumers. The final version of the proposal that passed out the Legislature, however, funds about a 6-cent reduction of the price of gas at the pump out of the state’s budget.
Roberts’ bill will also streamline state permitting and reduce regulatory barriers for pipelines entering Utah to increase fuel supplies.
The governor was joined at the State Capitol by members of the Legislature — including Senate President Stuart J. Adams (R-Layton) and House Speaker Mike Schultz (R-Hooper) – as well as Joel Ferry, executive director of the Utah Department of Natural Resources and Rikki Hrenko-Browning, president of the Utah Petroleum Association.
That gathering was intended to mark the signing of the agreement committing the state and industry to look for opportunities to expand pipelines and storage opportunities, allowing refineries to increase seasonal supply and support elevated demand. Those agreements will also strengthen Utah’s position as a reliable energy-producing and refining state while supporting economic growth and consumer affordability.
Schultz emphasized that the agreement signed Feb. 23 promises to bring in nearly 800,000 additional gallons of fuel into the market every single day, boosting competition and putting real downward pressure on prices at the pump.
“We look forward to a productive working relationship with the State of Utah,” according to Nrenko-Browning, “that will continue to grow refined product output and to further solidify Salt Lake City as a leading fuels hub and energy provider for Utah and the Intermountain West.”
In addition to the agreement impacting gasoline availability, Utah state leaders also agreed to sign a Memorandum of Understanding (MOU) with Idaho on Feb. 23 to address constraints and explore opportunities to provide long-term, sustainable water supply on the Bear River system.
“Whether it’s flowing water down the Bear River or the flow of fuel through our refineries, Utah is committed to leading out with our partners,” said Ferry.
“By creating bold and innovative solutions with the petroleum industry and our neighbors in Idaho, we are ensuring Utah remains the best place to live, work and raise a family.”