Utah leaders, oil industry pledge refinery output boost; Speaker Schultz announces 15% gas tax cut starting July 1

Gov. Cox, House Speaker Mike Schultz and representatives of Utah’s petroleum industry announced a joint effort to bolster local fuel supplies and lower pump prices, saying the plan pairs industry production commitments with state policy changes.

At a state press event, Gov. Cox said industry partners have committed “a bold goal of increasing refinery production by 23,500 barrels per day within the next 5 years” to help ensure affordable fuel for Utah and neighboring states. He framed the initiative as part of Operation Gigawatt and said the state will support refinery capacity, storage development and needed infrastructure.

"Beginning July 1, Utah's gas price or gas tax will be reduced by 15%," House Speaker Mike Schultz said, calling the tax change an immediate measure to put money back into Utahns' pockets while longer-term supply increases are pursued. Schultz described the overall strategy as expanding in-state production, bringing new pipelines and using strategic storage so refineries can operate at full capacity year-round.

Ricky Renko Browning, speaking for the Utah Petroleum Association, highlighted the industry’s recent growth and said all five Salt Lake refineries now produce Tier 3 fuels. He said the industry has invested in local refineries and is prepared to work with the state to increase finished-product output and strengthen market stability.

Officials stressed a mix of near-term and long-term actions: the announced gas-tax reduction for immediate relief and a multi-year increase in refinery production, plus permits and infrastructure to sustain higher output. Gov. Cox and legislative leaders also said they will review tax credits and incentives to ensure they ‘‘directly encourage supply and fair pricing at the pump.’’

The announcement did not include any legislative roll-call vote at the event; the gas-tax change was presented as an administration/leadership action to take effect July 1. Event speakers then joined industry partners to sign two agreements on stage.

What’s next: officials said they will pursue permitting reforms and infrastructure projects to support the production goals and will continue coordination with industry. The signing at the event formalized the agreements announced, but the transcript does not record a separate legislative vote on the tax change.