Kwik Fill just north of Jamestown dropped its price for a gallon of gasoline by 20 cents Wednesday. The savings appear to be due to tax breaks by the state and county governments. P-J photo by Eric Tichy

Local residents may be noticing a slight drop in gasoline prices, and that’s thanks to state and county governments.

New York state suspended 16 cents it collects in gasoline tax which took effect Wednesday. Officials in Chautauqua and Cattaraugus counties took a similar measure, collecting gasoline tax on only the first $3 of gasoline sales. It is believed to save those county residents 4 cents a gallon.

“I was pleasantly surprised,” said Chautauqua County Executive PJ Wendel, when he saw at least some gas prices had dropped 20 cents a gallon. “There’s nothing requiring retailers to provide that relief.”

The downside, Wendel noted, is that when the county passed the gasoline tax break, fuel prices at that time were 40 cents lower than they are right now.

Wendel said at this point the state attorney general has not issued any warnings to fuel providers that they must cut their prices when this tax break went into effect. If one comes out, he said he would pass that information along.

Those purchasing fuel in Erie County could see a slightly larger tax break. The Erie County Legislature decided to collect gasoline tax on only the first $2 of fuel purchased. That means their prices could be 4 cents a gallon less than Cattaraugus or Chautauqua counties.

Gov. Kathy Hochul said it’s important for governments to help residents.

“Fuel prices have surged in recent months, hurting working families and small businesses the most, and it is crucial that we provide New Yorkers relief,” she said in a news release. “By suspending certain fuel taxes for the next seven months, New York is providing some $609 million in direct relief to New Yorkers — a critical lifeline for those who need it most. At a time when families are struggling because of economic headwinds and inflation, we will continue to take bold action to reduce the economic burden on New Yorkers and get money back in their pockets.”

According to AAA, the national average price for a gallon of gasoline on Tuesday was $4.62. One year ago, the price was $3.05. Tuesday’s state average, when no tax breaks were in place, was $4.93.

In Chautauqua County, many of the gas stations were selling fuel Tuesday for $4.79 a gallon. Signs could be seen dropping to $4.59 Wednesday.

Erie County Executive Mark Poloncarz issued a statement that it may take a few days for the price adjustments based on when retailers receive their next delivery.

But the fuel break won’t last forever. Both Chautauqua County and New York state are going back to the full tax collection Dec. 1.