Puerto Rico’s governor signed a measure Tuesday suspending taxes on gasoline and diesel for 45 days amid the worldwide surge in petroleum prices.
The U.S. territory currently imposes a tax of 16 cents per gallon of gasoline and 4 cents per gallon of diesel.
Gov. Pedro Pierluisi said an additional $25 million will be added to the government’s general fund to make up for the loss of revenue as a result of the temporary tax moratorium.
Officials say they expect a gallon of gasoline in Puerto Rico to reach $6 in upcoming months.
Experts blame the rising prices on higher crude oil costs and limited gasoline supplies following disruptions from the COVID-19 pandemic and partly from Russia’s invasion of Ukraine.