Kemp temporarily suspends the state gas tax as prices at the pump continue to soar

Georgia drivers may soon see a little temporary relief at the pump after Gov. Brian Kemp suspended the state’s motor fuel tax as gas prices continued to surge.

Kemp issued an executive order Monday declaring a state of emergency for gas supply disruptions. The suspension will take effect Tuesday and run through Oct. 29.

“Global markets remain unstable and are subjecting Georgians to unpredictable price shocks on basic goods and services, including but not limited to gasoline and diesel fuel prices,” Kemp wrote in the order. “The factors driving these market shifts are inherently unpredictable, and therefore, difficult, if not impossible, for the citizens of our state to budget for, worsening the impact on hardworking Georgians.”

Kemp has suspended the tax several times during his time in office, including in 2022 when the launch of the war in Ukraine caused oil prices to rise sharply, in the fall of 2023 as inflation spiked, in 2024 following Hurricane Helene and earlier this year after the outbreak of the Iran war.

The motor fuel tax is 33.3 cents per gallon for gasoline and 37.3 cents per gallon for diesel. It brought in just under $193 million to the state in August, according to the state Department of Revenue. Money collected through the tax is used to maintain roads and bridges, and the state has previously dipped into reserves to make up for funds lost through other suspensions.

As of Monday, the average gallon of unleaded gas will set you back $4.19 in Georgia according to AAA, better than the national average of $4.47, but a darn sight worse than last year’s statewide average of $2.87.

If the suspension were in effect Monday, the cost to fill a 15-gallon tank would drop from $62.85 to $57.90, but drivers should not expect to see prices drop immediately.

That’s because the tax is collected at the distributor level and passed on to consumers, which means the fuel sitting in the tank at your local filling station has already been taxed at the normal rate. Drivers can expect to see prices decline once that gas is cycled through.

Gas prices have skyrocketed in recent months as uncertainty in the Strait of Hormuz continues, and in an election year centered around affordability, high gas prices have become the most visible symbol of the challenges facing consumers.

Both of Georgia’s gubernatorial candidates have weighed in on the situation, with Democrat Keisha Lance Bottoms calling on Kemp to pause the rate last week and Republican Rick Jackson’s economic platform calling for the automatic suspension of the fuel tax when prices increase past a certain rate. The election is Nov. 3.

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