North Carolina Fuel Prices Hit U.S. Low After Tax Cut
Governor Josh Stein suspended fuel taxes through Thanksgiving, making North Carolina the state with the lowest average diesel and gasoline prices in the United States.
North Carolina now has the lowest average prices for diesel and regular unleaded gasoline in the United States, undercutting the next lowest states by 16 cents per gallon. This price drop follows the enactment of the Relief at the Pump law, signed by Governor Josh Stein on October 9, which suspended 41 cents per gallon in fuel taxes through Thanksgiving.
State averages currently stand at $5.53 for diesel and $3.48 for unleaded gasoline, while national averages are $6.34 and $4.28, respectively. The tax suspension is expected to result in a $362.3 million loss in highway maintenance revenue for the North Carolina Department of Transportation. To mitigate this, the state is utilizing its Stabilization and Inflation Reserve account to prevent a negative impact on its credit rating.
Fuel taxes are scheduled to return on December 1 unless the suspension is extended. The broader price volatility seen throughout 2026 has been linked to geopolitical tensions, including U.S. and Israeli missile strikes in Iran and subsequent ceasefire declarations by President Donald Trump.
