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North Carolina legislator calls for fuel tax holiday

In pursuit of lower prices at the pump, a North Carolina state lawmaker is calling for a special legislative session to reduce the state’s per-gallon tax on motor fuels.

Sen. Phil Berger, R-Eden, told The Charlotte Observer he wants legislators to approve a 2.5-cent-per-gallon break on gasoline and diesel fuel.

If approved, it would trim the state’s 27.1-cent-per-gallon tax to 24.6 cents – the rate charged at the end of 2004.

Berger also wants to cap the fuel tax, which changes every six months based on the average wholesale prices.

Gov. Mike Easley already has said he has no plans to roll back North Carolina’s fuel tax. Easley said the state relies too heavily on the tax revenue for road and bridgework to suspend it temporarily.

As an alternative, the governor has joined other Democratic governors who are calling on the federal government to solve the problem of higher fuel prices.

“We’ve got to do something better than we’re doing now on energy in this country,” Easley told The Associated Press. “We want to see Washington take up this issue.”

Easley said a monthlong moratorium in North Carolina would cost $150 million, The AP reported. He said it would be an unwise move given that the state faces a backlog of highway projects and skyrocketing roadwork costs.

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