Georgia drivers, including those in the Valdosta area, can anticipate some temporary relief at the pump after Governor Brian Kemp issued an executive order on Monday to suspend the state’s motor fuel tax. The suspension, which takes effect Tuesday, October 1, is set to run through October 29.
The Governor's order declared a state of emergency for gas supply disruptions, citing the instability of global markets. According to Kemp's order, these conditions are "subjecting Georgians to unpredictable price shocks on basic goods and services, including but not limited to gasoline and diesel fuel prices." He added that these market shifts are difficult for citizens to budget for, worsening the impact on hardworking Georgians.
As of Monday, the average gallon of unleaded gas in Georgia cost $4.19, according to AAA. This is an improvement over the national average of $4.47 but significantly higher than last year's statewide average of $2.87. The state's motor fuel tax is 33.3 cents per gallon for gasoline and 37.3 cents per gallon for diesel.
While the suspension is now in effect, drivers should not expect an immediate drop in prices. The tax is collected at the distributor level, meaning fuel currently in local filling station tanks has already been taxed at the normal rate. Prices are expected to decline once this existing fuel supply cycles through. Had the suspension been active on Monday, the cost to fill a 15-gallon tank of gasoline would have dropped from $62.85 to $57.90.
This is not the first time Governor Kemp has suspended the fuel tax. He has done so multiple times during his term, including in 2022 when oil prices surged following the war in Ukraine, in the fall of 2023 due to inflation spikes, in 2024 after Hurricane Helene, and earlier this year after the outbreak of the Iran war.
The motor fuel tax is a significant revenue source for the state, bringing in just under $193 million in August, according to the state Department of Revenue. Funds collected from this tax are allocated to maintain Georgia's roads and bridges. In the past, the state has utilized reserves to compensate for the funds lost during previous tax suspensions.
Gas prices have escalated in recent months, largely attributed to ongoing uncertainty in the Strait of Hormuz. With an election year heavily focused on affordability, high gas prices have emerged as a prominent symbol of the economic challenges facing consumers across Georgia.
Both gubernatorial candidates have commented on the situation. Democrat Keisha Lance Bottoms called on Governor Kemp to pause the tax rate last week. Republican Rick Jackson's economic platform proposes an automatic suspension of the fuel tax when prices exceed a predetermined rate. The general election is scheduled for November 3.
