Gov. Dan McKee brought his push to roll back a state gasoline tax increase to the business community Wednesday, holding a press conference at Pier Cleaners in Wakefield to highlight his proposed fiscal year 2027 budget measure to repeal a two-cent gas tax hike passed by the General Assembly last year.
McKee said the repeal would save Rhode Islanders an estimated $9 million annually and is part of what he calls his “Affordability for All” agenda.
“Last year, I chose not to sign the budget presented to me by the General Assembly due to its unnecessary cost increases on taxpayers, including an increase in the state gasoline tax,” McKee said. “Now, residents and businesses are struggling even more with the rising costs of gas.”
Larry Fish, owner of Pier Cleaners, which operates multiple locations, said he spent roughly $60,000 on gasoline last year, with half of his business dependent on laundry pickup and delivery services. He praised McKee for “giving and not taking” when it comes to small businesses.
Jim Bennett, president and CEO of RI Commerce Corporation, said the proposal would help ease pressure on businesses during difficult economic times. “Governor McKee’s proposed reduction of the gas tax is a meaningful step toward lowering operating expenses and strengthening Rhode Island’s business climate,” Bennett said.
Jane Cole, interim director of the RI Department of Revenue, said the cut would not create a budget shortfall. She noted that in December 2025, the state finished paying off motor fuel bonds that had been funded with two cents of the existing gas tax, meaning that revenue is no longer obligated to debt service.
McKee also framed the proposal within broader affordability efforts, citing plans to eliminate the state social security tax and reduce the portion of energy bills that reflect state taxes and programs.
