BUFFALO, N.Y. -- New York state's gas tax holiday went into effect at the beginning of June in conjunction with many counties instituting their own gas tax caps.

But despite the fact the government is collecting less, prices now are higher than they were a month ago.

"It may have had a little impact, but the reality is most of those taxes are going to the oil producers because they have monopoly and they're able then to extract the prices from the individuals, so all you're doing is raising the profits of the oil companies," SUNY Economist Fred Floss said.

Floss said experts warned lawmakers they believed reducing the gas tax would have little impact and potentially pull money out of the state's economy. He believes politics won out though.

"This makes them look like they care about individuals," Floss said. "It would probably be better if voters would just acknowledge that they can't do anything about this right now and not hold it against the politicians, but as long as voters are going to vote against you because they think you're not doing anything, we're going to see these policies that are really misguided."

Now the federal government is in a similar spot with the Biden administration calling for a three-month gas tax holiday. Floss said Congress appears to be pushing back.

"As more and more economists come out against this and are put on television like we're doing now, that's going to weaken any case for saying that what they did was the right thing," he said.

U.S. Rep. Brian Higgins pointed to data in Buffalo showing the city has not seen any significant savings over the rest of the country despite the state and local action. Higgins suggested a better option is to provide a refundable tax credit rather than relying on oil companies to pass on savings.

• SEE ALSO | Higgins: Federal gas tax holiday won’t fix problem at pumps

Floss said a targeted tax cut makes sense as the rising prices are hurting lower income families and individuals the most.

"We're not addressing those issues as well because we cut taxes for everybody where it really isn't all that important to those who are wealthy," he said.

Floss said if people travel less going into the fall and potentially work from home more, the prices should naturally fall but he expects they will remain higher than pandemic levels.