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Gas prices continue to rise despite gas tax holiday

Gas prices skyrocketing despite gas tax holiday
Published: May. 17, 2022 at 7:08 PM EDT
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(WFSB) - Gas prices continue to go up and everyone is feeling it.

Even a gas tax suspension isn’t enough to offer relief, and some businesses are struggling.

“This is ridiculous, this is the cheapest gas I found around here. I just drove around. $4.59 a gallon for regular that’s nuts,” said Steve Redekas, owner of American Excellence Garage Doors. “This thing won’t click off and my truck won’t be full.”

Gas prices keep rising.

Even though lawmakers suspended the gas tax until December 1, its hardly noticeable.

There’s no relief for diesel.

“And now diesel is really much more than regular?” said Shen Rashid, gas station owner. “Diesel is about $6.69.”

A lot of landscaping businesses and tree companies rely on diesel.

“I would say on any given job it’s probably $100 or a couple hundred bucks,” said Ian Fay with Trout Brook Arborists.

Trout brook arborists has about a dozen trucks, and Fay says they have no other choice but to pass gas prices onto their customers.

This is happening for a few reasons.

One is inflation. Everything is more expensive these days.

There was also a decrease in production during the pandemic because people weren’t driving as much.

It will take a while to ramp up production again, but economists say the biggest factor is the war in Ukraine.

“The real driving force is the war in Ukraine for the gas prices. They would fall back production would slowly increase and maybe in the summer months they stay around this, and they would be declining. But today the question is purely when does the war in Ukraine end,” said Chris Ball, Economics Professor at Quinnipiac University.

Economists say it could be another year or more before prices go down.