Georgia governor suspends fuel tax amid inflation worries

Kemp declares state of emergency to fight rising prices

Georgia Gov. Brian Kemp is once again suspending the collection of the state’s fuel tax in an effort to reduce the impact of rising prices.

The suspension will save drivers roughly 30 cents per gallon of gasoline.

The two-term Republican has also declared a state of emergency, continuing to say that failed policies from Washington are contributing to record-high inflation.

He suspended the fuel tax throughout most of last year for similar reasons.

"From runaway federal spending to policies that hamstring domestic energy production, all Bidenomics has done is take more money out of the pockets of the middle class,” Kemp said in a statement Tuesday, referring to a new term that the White House is using to promote President Joe Biden’s economic agenda.

“While high prices continue to hit family budgets, hardworking Georgians deserve real relief and that's why I signed an executive order [Tuesday] to deliver it directly to them at the pump,” he continued. “Working with partners in the General Assembly, we'll continue to help Georgians weather the economic headwinds caused by this president, his administration, and their allies in Congress.”

The order went into effect at midnight Wednesday and will expire on October 12 at 11:59 PM. But state officials are cautioning drivers that it could be a couple of days before they notice any lower prices because the current fuel supply has already been taxed.

The fuel tax is collected primarily to fund state highway projects like road repairs and widening lanes. State economists warn that suspending the fuel tax could cost the state about $180 million a month. However, the state is currently running a multibillion-dollar budget surplus, which could easily absorb the impact of a month-long fuel tax suspension.

According to AAA, Georgia’s average price for a gallon of regular unleaded gas is $3.56 per gallon, which is nearly 30 cents lower than the national average. But prices have actually been on a downward trend as the summer travel season winds down — the state average has dropped seven cents since last month. But as the governor pointed out in his executive order Tuesday, prices in Georgia are still up by more than 30 cents compared to this time last year.