The Connecticut gas tax holiday is over. The state suspended its 25-cent-per-gallon excise tax on gasoline and gasohol from April 1, 2022, through December 31, 2022, then phased the tax back in over the first four months of 2023. The full 25-cent rate has been in effect again since May 1, 2023, and no new suspension has been enacted since.
What the Suspension Covered
The holiday applied only to gasoline and gasohol, the fuels taxed at a flat 25 cents per gallon under subparagraphs (A) and (B) of C.G.S. § 12-458(a)(2).1FindLaw. Connecticut General Statutes Title 12 Taxation 12-458 Those are the fuels most passenger cars and light trucks burn.
Diesel, propane, and natural gas were explicitly carved out. The legislation stated that nothing in the suspension affected taxes on those fuels.2Connecticut General Assembly. Public Act No. 22-1, November Special Session Diesel is taxed separately under C.G.S. § 12-458h, where the commissioner adjusts the rate each year rather than applying the flat 25-cent gasoline rate. Diesel pumps saw no relief at any point during the holiday.
Timeline and Phase-Out
From April 1, 2022 through December 31, 2022, the 25-cent excise tax was fully suspended. Drivers paid zero state excise tax on each gallon of gasoline or gasohol during those nine months.2Connecticut General Assembly. Public Act No. 22-1, November Special Session
Starting January 1, 2023, the tax returned in five-cent monthly increments:
- January 2023: 5 cents per gallon
- February 2023: 10 cents per gallon
- March 2023: 15 cents per gallon
- April 2023: 20 cents per gallon
- May 1, 2023 onward: full 25-cent rate restored
The graduated return added roughly a nickel per gallon each month instead of a single 25-cent jump on one day. By May 2023, the holiday was fully unwound.2Connecticut General Assembly. Public Act No. 22-1, November Special Session
What Drivers Actually Saved
At full suspension, the holiday was worth 25 cents on every gallon, dropping to 20, 15, 10, and 5 cents during the phase-out months. For a driver filling a 15-gallon tank once a week, the full suspension translated to about $3.75 per fill-up, or roughly $15 a month. Across the entire 13-month period, a typical commuter saved somewhere in the range of $160 to $200 depending on how much they drove.
How much of that reached the pump is a separate question. Research from the Penn Wharton Budget Model found Connecticut gas prices fell by roughly 18 to 22 cents per gallon on average after the holiday began, meaning most but not all of the tax cut flowed through to consumers. Wholesale swings, delivery costs, and station-level pricing all played a role.
The Pass-Through Rule and Complaints
Retailers were required to reduce their per-gallon price by the exact amount of the tax reduction. During the full suspension, that meant cutting 25 cents from what the price would otherwise have been; during the phase-out, the required reduction shrank by five cents each month alongside the returning tax.2Connecticut General Assembly. Public Act No. 22-1, November Special Session Stations could not opt out, pass savings partially, or keep the tax cut as extra margin. The rule applied across all grades of gasoline.
A station that failed to pass the savings through faced investigation by the Office of the Attorney General, working with the Department of Consumer Protection. A violation was treated as an unfair or deceptive trade practice under C.G.S. § 42-110b, the Connecticut Unfair Trade Practices Act.3Connecticut General Assembly. Connecticut Code Chapter 735a – Unfair Trade Practices That classification let the Attorney General seek injunctive relief, restitution, and civil penalties.4CT.gov. Attorney General Tong Releases Guidance on Gas Tax Holiday Complaints
Consumers who suspected a station was pocketing the savings could file complaints through the Attorney General’s online complaint portal. Including the station’s name and address, the date, and a photo or receipt of the posted price strengthened the submission.4CT.gov. Attorney General Tong Releases Guidance on Gas Tax Holiday Complaints
What Connecticut Drivers Pay at the Pump Now
The 25-cent excise tax is back in full. On top of it, the state imposes a petroleum products gross earnings tax of 8.1% on the first sale of fuel within Connecticut under C.G.S. § 12-587, calculated on the wholesale price before state or federal excise taxes are added.5CT.gov. Petroleum Product Gross Earnings Tax Information Because that piece tracks wholesale prices, Connecticut’s effective per-gallon tax can shift from year to year.
The federal excise tax of 18.4 cents per gallon on gasoline (24.4 cents on diesel) applies at every pump nationwide. The state holiday did not touch the federal portion. Connecticut’s combined state and federal fuel tax burden consistently ranks among the highest in the country.
Could Another Holiday Happen
No further gas tax suspension has been enacted in Connecticut since the holiday ended in May 2023. Another one would depend on the same ingredients that produced the first: a sharp spike in fuel prices, political will in the General Assembly, and a governor willing to sign. The 2022 holiday required a special legislative session, which gives a sense of how unusual the measure was. Connecticut’s fuel excise tax funds road and transportation infrastructure, so each month of suspension carries a budget cost that legislators weigh against the relief delivered at the pump.