CROMWELL, Conn — The Connecticut gas tax holiday starts Friday when the price at the pump will be 25 cents cheaper as the state’s gas tax is lifted for three months.
Some gas stations, however, may not reflect the updated price on day one. The price reduction starts from the wholesaler on April 1. That’s when the retailer will reflect the price, but if stations purchase gas before the start of the month, they can wait until that supply is gone before lowering prices.
Kevin Curry, owner of 19 Teddy’s Stores in Connecticut, says this may have a bigger impact on the smaller stations.
“We’re big enough where we can handle it and take care of it. The smaller guy is the guy that always gets hurt the most,” he said.
The law passed the legislature and was signed by the governor last week. It was unanimously approved in the House of Representatives and Senate.
Curry said, even with already purchased fuel in the ground, they are going to lower their prices Friday. Others may not if they do not want to reap the money already spent.
“Some go through a load every day, some go through a load once a week,” Curry said.
If a station runs out before April 1, they could wait to get a new shipment. Michael Fox with the Gasoline and Automotive Service Dealers of America said they are advising places not to do that.
The cut does not include diesel fuel.
“There’s no guarantee you’re going to get that delivery,” he said.
He said if stations across the state also do that, while a majority would, there’s no way they could all get fueled on the same day. He said it would be ‘chaos.’
The executive director said this is a win-win for customers but can be a financial burden for the retailers.
“Our costs have gone up from $20,000 for a load of gasoline to almost $60,000,” Fox said.
The wholesale price day of purchase can also impact how much a driver pays at the pump. Curry said he’s seen the price change between twenty and thirty cents either way since the start of the war between Russia and Ukraine.
If the price is $4 on March 31st and $4.25 April 1st, drivers would likely pay the same price at the pump.
Tony Black is a multi-media journalist at FOX61 News. He can be reached at tblack@fox61.com. Follow him on Facebook, Twitter and Instagram.
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