Gov. Brian Kemp on Friday suspended Georgia’s gas tax for 60 days, making the Republican-led state the first to respond to surging fuel prices after the Trump administration’s military strikes on Iran.
The suspension will save drivers 33 cents per gallon on gas and 37 cents per gallon on diesel — costing the state up to $200 million a month. Georgia has billions of dollars in reserve it can use to cover the lost revenue.
Georgia is the first state to suspend its gas tax after the start of the war in Iran. The only other state seriously considering it is Connecticut, but that proposal has not yet passed, according to Jon Whiten, deputy director of the Institute on Taxation and Economic Policy.
The Georgia Senate approved the measure unanimously Thursday, one day after the House of Representatives passed it by an overwhelming margin.
Kemp signed the bill Friday during a ceremony at the state Capitol. He also signed a bill giving rebates of up to $500 to certain taxpayers.
“We’ve been able to return $9.7 billion to the taxpayers of our state since 2021 through multiple income tax refunds, income tax cuts and other targeted relief measures,” Kemp said.
The quick action on the bill underscores the political sensitivity of gas prices, which have risen nearly 40% amid the U.S. war with Iran.
“Hopefully this (conflict) will be resolved,” Sen. Chuck Hufstetler, R-Rome, told senators Thursday. “But, in the meantime, we’re going to do what we can to help our citizens of Georgia have the lowest costs possible.”
The average price of regular unleaded gasoline in Georgia was $3.79 a gallon Friday — up from $2.70 a month ago, according to AAA. The average price was $3.81 in metro Atlanta.
“It’s a win for our constituents and will hopefully give them much-needed relief,” state Sen. Nikki Merritt, D-Grayson, said.
Kemp has suspended the gas tax to address price spikes on three other occasions – most recently for two weeks following Hurricane Helene in 2024.
About the Author
Keep Reading
The Latest
Featured
