Rom Reddy, a businessman from Isle of Palms and former ExxonMobil employee, is speaking out against the proposal to suspend South Carolina’s gas tax for 120 days. While he acknowledges the pain of rising fuel prices for families, he says a tax suspension is the wrong tool and would undermine the state’s ability to maintain its roads and bridges.

Revenue at Stake

According to the South Carolina Department of Revenue, the gas tax generated about $1 billion in the most recent fiscal year. Roughly one‑third of that revenue comes from out‑of‑state drivers and truckers. A 120‑day suspension would therefore eliminate about $300 million in funding, with $100 million of that loss attributed to out‑of‑state motorists and $200 million taken directly from South Carolina taxpayers.

Limited Benefit to Drivers

The tax reduction would not automatically translate into lower pump prices for consumers. Retailers would no longer be required to remit the 28‑cent per‑gallon tax to the state, but there is no legal obligation for them to pass the full savings on to customers. In a market already seeing rapid price spikes—futures rose 12 cents in a single night—retailers could simply claim that any reduction was offset by higher wholesale costs.

Because the state has no mechanism to monitor how much of the tax cut is actually reflected at the pump, only a portion of the potential savings is likely to reach drivers. Moreover, when the suspension period ends, retailers could raise prices by the full 28 cents regardless of whether they ever reduced them, leaving consumers with higher costs and no lasting benefit.

Constitutional Concerns

Reddy also points out that granting the governor unilateral authority to suspend the gas tax—or any tax—raises serious separation‑of‑powers issues. He argues that such a move would bypass the legislature, which is constitutionally tasked with tax policy.

Alternative Solutions

Instead of a blanket suspension, Reddy suggests using the state’s surplus to provide a direct rebate to taxpayers. A rebate would deliver the full $300 million benefit immediately, avoid subsidizing out‑of‑state drivers, and keep the essential revenue stream for infrastructure projects intact.

He warns that tying road funding to volatile global oil markets—such as disruptions in the Strait of Hormuz—creates a dangerous dependency. By preserving the gas tax, the state can continue to fund critical road repairs and bridge projects without exposing the budget to geopolitical shocks.

Political Context

The proposal for a gas‑tax suspension has been championed by Attorney General Alan Wilson and other state officials who argue that temporary relief is needed to ease the burden on families. Reddy counters that the policy would primarily benefit out‑of‑state drivers and fuel retailer profits, while leaving South Carolina taxpayers to shoulder the cost of deteriorating infrastructure.

He urges lawmakers and the governor to consider a more targeted approach that respects constitutional limits, protects essential revenue, and delivers tangible relief to residents.

About the Author

Rom Reddy is a businessman based in Isle of Palms, South Carolina, with a background in the energy sector.

Original reporting: FITSNews — read the source article.