North Carolina suspends state gas tax through November 30

Governor Josh Stein has signed House Bill 3 into law, suspending North Carolina’s 41-cent state gas tax through November 30. The measure was passed during a special session of the General Assembly to provide relief amid rising fuel, grocery, and utility costs.

The legislation also includes provisions to waive penalties for the highway use of red-dyed diesel through the end of 2026, offering increased flexibility for farmers and the logging industry during harvest seasons. To mitigate the loss of revenue for transportation infrastructure, the state will utilize funds from the Stabilization and Inflation Reserve account.

While lawmakers suggest the tax pause could lead to lower prices at the pump, officials noted that market competition and supply costs will ultimately determine the exact savings for consumers. Democratic leaders have criticized the move as a temporary political measure that lacks long-term protections against price gouging.