Illinois Governor JB Pritzker announced on Tuesday that his administration would not implement the scheduled inflation adjustment on the state's gas tax. The decision freezes a 1.3-cent increase that was slated to take effect on July 1, 2026, pushing the implementation date to January 2027. Pritzker framed the move as a measure to provide working families with relief at the pump from Donald Trump, citing the impact of the Iran war on fuel prices.

The state legislature recently passed the budget for the fiscal year, which includes the provision to halt the tax hike. Illinois currently levies a tax of 48.3 cents per gallon of gasoline. This is added to the federal gas tax of approximately 18.4 cents per gallon, while diesel fuel carries a federal tax of approximately 24 cents per gallon.

Data from the American Automobile Association (AAA) indicates that the average gas price in Illinois on Tuesday was $4.5180 per gallon. Residents of Alexander County faced the highest average in the state at $4.8990 per gallon. The national average for gasoline also remained above the $4 mark on the same day.

Comparison with California

The issue of gas tax adjustments has also gained attention in California, where Governor Gavin Newsom defended the state's automatic inflation hike. Newsom noted that the legislation was approved by voters in 2018, prior to his assumption of office in 2019.

Meanwhile, GasBuddy analyst Patrick De Haan observed that prices are rising in multiple states due to price cycles. However, these increases are occurring at elevated levels because of the ongoing conflict involving Iran.