Rhode Island Drivers Could Save $9 Million Annually if Gas Tax Rollback Passes

Rhode Island drivers could see $9 million in annual savings if lawmakers approve a proposed rollback of a 2-cent gas tax increase. The tax hike, approved last year, is now under scrutiny as Governor Dan McKee pushes to reverse it, citing its burden on residents and businesses.

McKee, who refused to sign the budget containing the tax increase, has made affordability a central theme of his agenda. The rollback would directly affect small businesses, many of which rely heavily on fuel for operations. Pier Cleaners Dry Cleaning, for example, spent $60,000 on gas in 2023 alone.

State officials argue the rollback is feasible because the state paid off motor fuel bonds in late 2025, funded by the 2-cent tax. With that obligation cleared, the tax is no longer necessary to maintain infrastructure programs. The proposal now awaits a decision from the State House, where lawmakers will weigh the potential savings against any fiscal concerns.