Georgia drivers, including those in Valdosta and Lowndes County, may soon see temporary relief at the gas pump after Governor Brian Kemp suspended the state’s motor fuel tax. Kemp issued an executive order Monday, declaring a state of emergency for gas supply disruptions, with the suspension taking effect Tuesday and running through October 29.
The Governor cited volatile global markets, stating that they are "subjecting Georgians to unpredictable price shocks on basic goods and services," including gasoline and diesel fuel. He noted that these market shifts are difficult for citizens to budget for, worsening the impact on working Georgians.
The suspension targets the state’s motor fuel tax, which stands at 33.3 cents per gallon for gasoline and 37.3 cents per gallon for diesel. If the suspension had been in effect on Monday, the cost to fill a 15-gallon tank would have dropped from $62.85 to $57.90. However, drivers should not expect immediate price changes, as the tax is collected at the distributor level, meaning fuel currently in local stations has already been taxed at the normal rate. Prices are expected to decline once this existing fuel supply cycles through.
As of Monday, the average price for a gallon of unleaded gas in Georgia was $4.19, according to AAA. This is lower than the national average of $4.47 but significantly higher than last year’s statewide average of $2.87.
Money collected through the motor fuel tax is crucial for the maintenance of Georgia’s roads and bridges. In August alone, the tax brought in just under $193 million to the state, according to the state Department of Revenue. The state has previously drawn from reserves to offset funds lost during similar tax suspensions.
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 rose sharply following the war in Ukraine, in the fall of 2023 due to inflation spikes, in 2024 after Hurricane Helene, and earlier this year following the outbreak of the Iran war.
Recent months have seen gas prices skyrocket, with ongoing uncertainty in the Strait of Hormuz contributing to the increases. In an election year where affordability is a central theme, high gas prices have become a prominent symbol of the financial challenges consumers face. Both of Georgia’s gubernatorial candidates have weighed in on the issue, with Democrat Keisha Lance Bottoms calling for Kemp to pause the tax last week. Republican Rick Jackson’s economic platform includes a proposal for the automatic suspension of the fuel tax when prices exceed a certain rate. The election is scheduled for November 3.