Vivek's Gas Tax Relief Plan

Vivek Ramaswamy is calling on the General Assembly to enact a fully-funded 90-day suspension of Ohio’s motor fuel tax now. Ohioans should not have to wait for a new governor to get relief. AAA reports regular gasoline averaging $4.52 today and diesel at a record $6.76. Ohio can temporarily reduce the tax burden while replacing funding for roads and bridges.^[1]

Record Prices – and a Diesel Tax on Everything

Ohio regular gasoline averages $4.52 a gallon today. Diesel is $6.76 – the highest average ever recorded in the state, set today. Ohio taxes gasoline at 38.5¢ per gallon and diesel at 47¢ per gallon.

The diesel tax, in particular, is also a hidden tax on everything Ohioans buy:

97% of Class 8 semis and 76% of commercial trucks (Classes 3-8) run on diesel. Every load of groceries and freight pays 47¢ per gallon.

75% of farm equipment, including nearly all row-crop tractors, combines, and harvesters, runs on diesel, in the middle of harvest season.

School buses, transit, construction, and mining equipment run on diesel.

Diesel vehicles were 5.8% of U.S. passenger sales in Q2 2026 and rising – mostly working people's pickups.

At today's prices, a family filling a 15-gallon tank weekly pays roughly $300 a year in state gas tax alone. An owner-operator running 100,000 miles at 6.5 mpg pays about $7,200 a year in Ohio diesel tax, creating costs that land on every grocery shelf in the state.

Act Now

Be Ready in January

The General Assembly should return and pass a complete, three-month motor fuel tax suspension as outlined below, including replacement funding.

Vivek also supports reaching the two-thirds vote in each chamber required for emergency enactment.^[2]

If the legislature does not act this year, Vivek will present a bill during the transition and push for passage when he takes office on January 11, 2027. He is prepared to call a special session if the Legislature does not act.^[2]

Suspend the Full State Tax for 90 Days^[1,3]

Fuel	State tax removed	Illustrative monthly purchase	Tax savings over 90 days
Gasoline	38.5¢ per gallon	63 gallons	$75
Diesel/other fuels	47¢ per gallon	1,275 gallons	$1,800

Fund the Suspension Before it Begins

Census data show $2.75 billion in Ohio motor-fuel tax collections in FY 2025. Ninety (90) days represents approximately $678 million. To cover this, Vivek’s plan proposes a $750 million appropriation, which will provide room for inventory credits, administration and forecast uncertainty.^[4]

The state should begin by appropriating any unallocated balance from ODOT’s $2.82 billion FY 2026 ending cash balance. Next, the state should appropriate uncommitted General Revenue Fund dollars. Ohio has approximately $130 million in GRF capacity, with a projected FY 2027 ending cash balance of $745 million. If needed, a transfer from the Budget Stabilization Fund can cover the remainder. The rainy-day fund is at a record high exceeding $4 billion. Importantly, any unused money should automatically return to its source after the conclusion of the 90 day period.^[5]

Protect State and Local Road Funding

Lost receipts should be replaced through monthly transfers using the existing statutory distribution formulas, including required deductions and debt service. Revenues are currently allocated 63.43% to the state, 14.93% to municipalities, 12.93% to counties, 6.97% to townships and 1.74% to the Local Transportation Improvement Program. Actual payments will follow the complete existing formulas to protect federal matching funds, construction commitments, and winter maintenance.^[6]

ODOT’s cash balance supports multiyear contracts and provides advances for pending federal reimbursement. Its budget request identifies a $1.6–$1.8 billion minimum cash range. That working capital should be preserved before using the balance for temporary financing.^[6]

Replenish the Rainy Day Fund with Verified Medicaid Fraud Savings

Vivek has laid out a plan to combat Medicaid fraud. The new funds from a federal agreement allowing Ohio to retain more savings from fighting Medicaid fraud can be used to restore any funding drawn from the Budget Stabilization Fund and ODOT’s cash balance.^[7] Importantly, however, all dollars will be pre-appropriated to ensure no project interruptions.

Make the Relief Visible and Accountable

The plan must require supplier invoices to show the tax change. The Ohio Department of Taxation may offer credits for previously-taxed station inventory only when entirely passed through to customers. It should also publish weekly pump-price comparisons adjusted for wholesale costs and neighboring-state taxes, and monthly reports on replacement road funding. Existing laws against collusion and deceptive pricing should also be prioritized by law enforcement and prosecutors.^[3]