It appears that a bill to save motorists as much as $0.23 a gallon at the gas pump is on its way to passing. Legislation by Speaker Therese Terlaje to eliminate the Liquid Fuels Tax drew only mild resistance from Leon Guerrero Administration officials today.

The legislation comes in response to spiraling gas prices that are hitting local consumers hard. But it would also slash about $10 million in special fund revenue that helps fund mass transit, and village road repairs.

Mayor’s Council of Guam executive director Angel Sablan was among the skeptics, saying, "While at face value repealing the liquids fuels tax looks good but in the long run will it do us good? Or are we going come back in the 37th Legislature to impose fuel taxes again due to roads going into disrepair and no funds to repair them."

Therese Terlaje, the legislative speaker, said, "I absolutely believe that the government services like village road repairs and critical services provided by the mayors, the Guam Rapid Transit Authority and the Department of Revenue & Taxation are important to be funded, but I don’t think our road repairs should be paid on the backs of our gas consumers only."

The speaker said she would amend the bill to ensure that the shortfalls would be made up by excess revenue from the General Fund.

And even Bureau of Budget Management & Research director Lester Carlson called those “very sensible adjustments”. He further noted, "I fully appreciate the speaker’s comments about not wanting to raise alarms about defunding, I appreciate that very much and I also appreciate the change in the funding source that’s not reflected currently."

But he also urged that the fuels tax cut be limited to gasoline, and not include diesel and aviation fuel which are not direct costs to most motorists.

The Guam Chamber of Commerce also came out in support of the proposal. And the speaker says she’s received assurances from the gas companies that if the fuel tax is lifted, they will pass on those savings to motorists.