Montana Declines Special Session to Cut Fuel Taxes

State leaders maintain existing fuel tax rates as officials highlight the necessity of infrastructure funding revenue.

Updated on Oct. 15, 2026 in Taxes

Isometric editorial illustration of a steel bridge spanning a valley, representing Montana's commitment to maintaining essential state infrastructure. — Montana lawmakers declined to call a special session to cut fuel taxes, citing the critical need for continued state highway and bridge maintenance. AI Illustration. Upload story photo >

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Should your state reduce fuel taxes to lower the cost of gasoline and diesel for drivers?

Montana lawmakers have opted against calling a special legislative session to reduce state fuel taxes. While fuel costs have risen significantly since early 2026, officials emphasize that tax revenue is vital for highway and bridge maintenance.

Why it matters

State officials maintain that the current fuel tax structure is necessary to leverage federal matching funds and ensure ongoing maintenance of state infrastructure. Only the legislature has the authority to alter these rates, and no session is planned before 2027.

Montana levies a tax of 33 cents per gallon for gas and 30 cents for diesel. Combined with federal taxes, this totals 51 cents per gallon for gas and 54 cents for diesel.

The players

Kristen Juras

She serves as the Lieutenant Governor of Montana and has exercised executive authority to permit specific fuel usage on public roads.

Donald Trump

He is the President of the United States and has signed an executive order suspending a federal ban on red-dyed diesel use on public roads.

The details

Although state lawmakers will not address tax cuts, Lt. Gov. Kristen Juras issued an executive order permitting the use of red-dyed diesel on public roads. This measure aligns with a federal order signed by President Donald Trump to assist with costs until late November.

March 2026: Diesel prices began to spike.
November 23, 2026: Expiration of executive order allowing red-dyed diesel use.
January 2027: Start of the Montana biennial legislative session.

Market Dynamics

This decision reflects the structural reliance on fuel tax revenue to support the Montana Department of Transportation's fuel tax-funded highway maintenance program. The refusal to call a special session highlights the difficulty of deviating from long-term infrastructure funding commitments.

Drivers will continue to pay current state fuel tax rates, as the legislative path to tax reduction remains closed until 2027. Residents may utilize red-dyed diesel for vehicles on public roads until late November under the current executive order.

The takeaway

The refusal to hold a special session indicates that state highway funding priorities currently outweigh calls for immediate tax relief. Residents should prepare for existing tax rates to remain in place through the end of the year.