Governor Mills Rejects Maine Gas Tax Repeal

Governor Janet Mills stated she will not pursue a repeal of the state gas tax to preserve Maine's highway budget.

Updated on Oct. 16, 2026 in Oil and Gas

Isometric editorial illustration of a concrete highway overpass, representing the stability of Maine's infrastructure budget and funding. — Governor Janet Mills formally rejected a proposal to repeal Maine's state gas tax, citing the necessity of preserving highway budget revenue. AI Illustration. Upload story photo >

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Governor Janet Mills has formally rejected a proposal to eliminate the Maine state gas tax. The decision aims to address the existing structural gap in the state's highway budget.

Why it matters

Eliminating the tax would have significantly worsened the state's highway budget deficit. The administration maintains that current revenue levels are necessary to sustain critical infrastructure funding.

The average gas price in Maine currently stands at $4.36 per gallon, compared to the $4.33 national average. Meanwhile, the average diesel price in Maine is reported at $6.43 per gallon.

The players

Janet Mills

Janet Mills is the Governor of Maine who recently stated her opposition to repealing the state gas tax.

The details

Governor Mills clarified that she lacks the unilateral authority to remove the tax, which remains a key component of state funding. Proponents of the repeal had pushed for the change in response to fluctuating fuel costs, but officials emphasized that the highway budget requires the consistent revenue stream the tax provides.

October 16, 2026: Governor Mills addressed the gas tax proposal.

Market Landscape

State decisions on fuel taxation reflect broader efforts to stabilize public infrastructure funding amidst volatile commodity markets. This move positions the administration to maintain existing service levels rather than seeking alternative revenue sources for the Maine state highway budget.

Drivers in Maine will not see a reduction in fuel costs resulting from state tax policy changes at the pump. Residents should anticipate that current gas and diesel prices will remain subject to standard market fluctuations.

The takeaway

Maintaining the gas tax provides a stable source of revenue for essential road repairs throughout the state. Residents should prepare for continued price volatility as the administration prioritizes long-term infrastructure health over short-term tax relief.