Will Georgia’s gas tax suspension help pump prices go down?

The average price for regular unleaded gas was $3.85 per gallon in metro Atlanta Friday, up more than a $1 per gallon since the war started, according to data from Gas Buddy.

“This will bring some welcome relief as motorists are looking at spring break travel,” said Patrick De Haan, a petroleum analyst with Gas Buddy. “It will likely make Georgia, at least temporarily, for 60 days, one of the cheaper states in the nation when it comes to filling up.”

AAA says 36% of Georgians expect to travel for spring break, and of those, 29% plan a road trip.

But gas prices won’t come down immediately. That’s because gas stations will need to run through their fuel supply that’s already been taxed.

“Taxes are paid at the distributor level, so it may take a few days to see the reduction at the pump,” Joe Snowden, spokesperson for the commissioner’s office at the Georgia Department of Revenue, said in an email.

And it’s unclear if gas prices overall could continue to rise offsetting the tax savings.

Still, Decatur-area resident Cliff Harshaw was relieved to hear Friday’s news. He has a second, part-time job working for grocery delivery service Instacart, requiring him to fill up often.

“It’s been insane,” Harshaw said of prices while at the gas pump Friday. He said he was pleased the governor took some action. “I think that shows he’s listening to the public and trying to alleviate some of the costs.”

Drivers should expect to see the full benefit of the gas tax suspension, De Haan said.

“I know many motorists have been skeptical of that in the past, but time and time again, we see stations passing along the full decrease,” he said. “It’s a line item expense for them. If they don’t pay it, it doesn’t affect their margin at all, so they pass it along.”

The conflict in the Middle East has disrupted oil production and shipping because a vital export route, the Strait of Hormuz, has effectively closed amid attacks from Iran.

The U.S. is a top producer of oil and doesn’t rely as much on Middle Eastern production as other countries do. But the war affects crude oil prices, which are ultimately passed down to consumers at the pump.

It’s unclear how long elevated gas prices may last.

“I don’t know the twists and turns that are coming, but it’s all going to be extremely contingent on whether or not the Strait of Hormuz starts to see ships transiting through,” De Haan said. “We won’t see relief until that happens.”