ROCHESTER, N.Y. (WROC) — Consumers in Monroe County are expected to soon see some relief at the pump due to state and county caps on taxing gas.
Steven Carnovale is a Professor of Supply Chain Management at the Saunders College of Business at RIT and explained to News 8 Monday about the short and long-term effects of the county’s tax cap proposal.
“Generally speaking, will this have a cost reduction effect, yes it will,” Carnovale said of the gas tax cap.
The law is expected to pass with little resistance in the Monroe County Legislature and go into effect on June 1. The question is: Will the relief last, and how will that money be made up?
“Anytime an there’s an economic decision that happens, there’s always an externality, be it positive or negative,” Carnvolae said.
According to the professor, in this case, it’s both positive and negative. He says it is good that prices are being reduced, but on the other hand, he wonders if the government will raise taxes if they can’t make up the loss elsewhere.
“How are they going to balance their book, so to speak?” Carnovale said. “So there are always two sides to the coin.”
Carnovale says the long-term effects are unknown right now, but added that one thing consumers should be aware of is the fact that this gas tax cap will not last forever.
“Consumers are going to get used to reduced prices, so if you were to just put it back on the same amount you took it off, people are going to feel that,” he said.
With that said, Carnovale says saving approximately eight cents per gallon in Monroe County might mean something different for everyone’s situation. He says eight cents alone isn’t a lot but on top of the state’s reduction, where consumers are paying half of what they were per gallon, it could be meaningful.
Some other ways to cut down at the pump include combining your errands and making sure your vehicle isn’t carrying too much weight.