Pain at the pump: NC’s top lawmakers announce plan to come back for a special session on fuel prices

As fuel prices continue to rise nationwide and polls show Democrats poised to make gains in November’s elections, the state’s top Republican lawmakers said Saturday they plan to hold a special legislative session aimed at addressing fuel prices in North Carolina.

State House Speaker Destin Hall, R-Caldwell County, and state Senate Leader Phil Berger, R-Rockingham County, announced in social media posts they will recall the state General Assembly and will hold a special session to “provide immediate relief at the pump.” Republicans have large majorities in both chambers of the state’s General Assembly.

“Rising fuel costs are squeezing North Carolina families’ pocketbooks and creating challenges for farmers across the state,” Hall said in a post on X. “North Carolinians can’t afford to wait.”

“North Carolina families and farmers are feeling the impacts of rising fuel costs every day,” Berger wrote on social media, “They need real relief, and they need it now.”

It remains unclear what that relief could look like, or how soon drivers in North Carolina could see it. The state could suspend all or some portion of its 41 cents per gallon state fuel tax, which pays for the construction, maintenance, and operation of the state's roads and transportation system 

Gas prices have risen steadily since February, when the U.S. and Israel began attacks on Iran. According to AAA, North Carolinians pay an average of $4.03 per gallon, below the national average of $4.38 per gallon, and $6.03 per gallon for diesel. 

In the months since the war started, Iran has nearly closed off the Strait of Hormuz, where a large portion of the world’s oil supply passes through. A month ago, Yemen’s Iranian-backed Houthi rebels attacked a crucial Saudi Arabian oil pipeline, which Saudi officials said would be out of service for weeks while it was repaired.

The special session comes just weeks ahead of the midterm elections. North Carolina Democrats are hopeful that they can reduce Republican majorities in both chambers and, if things truly move their way, take the majority in the NC House. Robert Reives, the top Democrat in the state House, criticized the Republican leaders’ move for a special session, saying that Republicans have not helped make things more affordable.

“In fact, they have made life harder and much more expensive for almost everyone,” Reives said on X. “Now, just weeks before voters can hold them accountable at the ballot box, they are trying the first in what will surely be many attempts to distract from their horrible record.”

Sydney Batch, the NC Senate’s top Democrat, called the session “a day late and a dollar short.”

“North Carolina families have been getting screwed over by rising prices for months thanks to failed Republican leadership,” Batch said. “Yet, somehow, Phil Berger and Destin Hall just now noticed? Exactly one month before Election Day? Perhaps they should spend time with hard-working North Carolinians rather than their wealthy donors.”

The rise in gas prices since February has driven many states to move to ease the burden other drivers are feeling. In March, Georgia became the first state to suspend its fuel taxes after the war in the Middle East sent prices spiraling. Republican Gov. Brian Kemp extended the tax break into June. More recently, he announced a 30-day resumption of the motor fuel tax holiday, which began Tuesday.

In North Carolina, Gov. Josh Stein said the rise in diesel prices couldn’t come at a worse time for farmers in the state. Stein said he directed the Department of Revenue not to penalize drivers using red-dye diesel on the roads.

“For months, some farmers have been paying $500 or more just to fill up their tractor,” Stein said. “All of these costs add up, and when farmers pay more for their operating costs, it makes our groceries more expensive for our families.”

State actions intended to provide relief from high fuel prices don't always have the effect some consumers expect. That's partly because fuel price volatility could cause costs to rise even as tax rates fall. But that's also because taxes typically are charged at the wholesale level, not at the retail pump.

“Customers expect the day that a gas tax holiday takes effect that the price at every pump will be reduced by that amount. But it’s way more complicated than that,” said Jeff Lenard, a spokesperson for the National Association of Convenience Stores.

“The costs and the changes happen further upstream," he said. "The retailer may also have a product that has already been paid for with taxes that needs to be sold before you can acquire the new fuel that is not taxed and you can lower the price.”

Around the globe, the Group of Seven wealthy democracies said it planned to release 100 million barrels of oil and fuel products, starting with “substantial amounts of diesel, amid record-high prices in the U.S.

The Associated Press contributed to this report.