Gov. Beshear freezes gas tax to ease price spike in Kentucky
FRANKFORT, Ky. (WNKY) – Andy Beshear on Tuesday announced a series of steps to blunt rising gas prices as Kentuckians face costs topping $4 per gallon amid global instability tied to the war in Iran.
Beshear signed an emergency regulation freezing the state gas tax at 26.4 cents per gallon, preventing an increase scheduled for July 1. The move is expected to save Kentuckians a combined $1.7 million each month.
He also declared a state of emergency and proposed a 10-cent reduction in the gas tax for both regular and diesel fuel. The cut requires approval from the state attorney general before taking effect and could save drivers an estimated $26.8 million over a month.
To ensure consumers benefit, Beshear activated Kentucky’s price-gouging law to prevent fuel providers from keeping the difference.
“The American people are paying the costs of the war, and families are struggling at the gas pump, grocery and more,” Beshear said. “I recognize the pain our families are feeling and I’m taking steps to help because it’s the right thing to do.”
The governor also sent letters to congressional leaders urging a suspension of the federal gas tax through the end of the year.
In a separate move, Beshear signed an order to freeze the state’s motor vehicle assessment rate ahead of a planned 2027 increase, preventing higher property taxes for vehicle owners.
Additional relief could come later this month, when drivers in parts of northern Kentucky are expected to see prices drop after changes to a federal gasoline program take effect May 27.
