The war in Iran, in driving up the cost of gas and exacerbating the affordability crisis, has created a perfect storm that could cause even more hardship for working-class families and those on fixed incomes. The promised tax refunds by President Donald Trump will likely be consumed by higher gas and food prices.
Gov. JB Pritzker and the General Assembly should provide relief for Illinois citizens by suspending the state portion of the gas tax for 60 days. Illinois’ combined motor fuel tax is 48 cents per gallon. Diesel fuel is taxed at 56 cents per gallon. Every municipality and county should also consider suspending their portion of the tax. With a relaxing of state, county and city gas taxes for 60 days, motorists could save nearly $1 per gallon. This would provide immediate relief to families facing heightened economic pressures.
Also, suspending the gas tax would mitigate the rising price of goods and services over the short term from the increase in transportation costs. Clearly, the war is an emergency that has caused economic disruption for working-class families, senior citizens and those living paycheck to paycheck in Illinois. In addition to helping residents, relaxing the gas tax would help businesses keep operational costs down during this period of economic uncertainty.
In Chicago and Cook County, motorists would save over 10 cents per gallon. The sales tax rate in Chicago adds higher costs for residents buying gas in the city. A gas tax holiday from the state, city and county would amount to a substantial tax cut for working families.
Pritzker, as part of his 2026 budget proposal, boasted about the state’s rainy-day fund growing from $4 million to $2.4 billion. He acknowledged that Illinois has the fiscal foundation to manage hard times. Also, the governor’s 2027 budget projects a small $24 million surplus. With gas prices jumping 70 cents to 90 cents in just a few weeks, Illinoisans are feeling the pain at the pump. Our citizens have to get to work, medical appointments, grocery stores, schools and day cares. They deserve relief from high gas prices precipitated by the war in Iran.
The people of Illinois cannot wait on the federal government to provide relief. Our leaders in Illinois should act immediately to ease the economic pain.
Georgia recently became the first state to suspend its portion of the gas tax for 60 days. The state is using its budget surplus to offset lost revenue for road projects. Also, Gov. Brian Kemp provided $1.2 billion in tax rebate checks to Georgia families who filed tax returns in 2025. Single filers received $250; heads of households, $375; and couples filing jointly, $500. Kemp noted that the money represents help with groceries, rent, bills and clothes.
Why can’t Illinois do the same? According to AAA, the average price for a gallon of gas in Illinois is well over $4, and diesel is $5. Nearly $1 of the fuel costs in Illinois comes from state and local taxes. One economist from Stanford University estimates that families will pay $740 more in gas costs this year. The energy shock will hit the hardest families with the least amount of savings.
A recent U.S. News & World Report nationwide survey found that 43% of Americans do not have enough savings to pay for a $1,000 surprise expense.
The following are suggestions to help ease Illinoisans’ economic pain:
- Pritzker should suspend the gas tax for 60 days and provide a tax rebate for struggling Illinois families.
- Pritzker should not allow Uber, Lyft and taxicabs to add a fuel surcharge due to higher costs — unless he suspends the gas tax.
- Illinois Attorney General Kwame Raoul should protect consumers from price gouging.
- Illinois Senate President Don Harmon should pass legislation granting the Illinois Department of Insurance the power to reject excessive rate hikes by insurance companies regarding homeowners’ insurance rates. Illinois is the only state without legal authority to prohibit, limit or cap rate increases for home and auto insurance.
- Business and faith leaders should consider helping those struggling to put gas in their cars or trucks.
- This is the fourth week of the war in Iran. Even if the war ended soon, motorists would still face higher prices because of the shipping and production disruptions. It will take time for the prices to adjust.
Every effort must be made to ease the burden of high gas prices on our citizens and businesses. I am doing my 20th free gas giveaway on April 4. If the gas tax is suspended, it will allow for more families to benefit from free gas.
It is raining in Illinois from high taxes and an affordability crisis. Providing relief for working-class families demonstrates leadership and compassion.
I write this commentary to make those comfortable with allowing Illinoisans to pay higher fuel costs uncomfortable.
Willie Wilson is a business owner, philanthropist and former mayoral candidate.
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