Kentucky Governor Files Emergency Resolution to Freeze State Gas Tax Hike

Friday, June 3, 2022 at 9:39 AM

The move will offer Kentuckians some relief at the pump as record-high prices continue.

(Frankfort, Ky.) – Governor Andy Beshear and his administration have taken action to freeze the state gas tax.

An emergency resolution filed on Thursday will prevent a two-cent increase per gallon that would have taken effect on July 1.

The state gas tax is set by statute, both in its rate and how it is calculated. The current rate of 26 cents was set to increase under a trigger, resulting in a price hike on both regular and diesel fuel.

“Kentuckians cannot afford to pay more, and I am committed to doing everything I can to help keep more dollars in people’s pockets,” said Gov. Beshear. “This law was never intended to hurt Kentuckians during tough times, but with rising prices and inflation, this increase would have a negative impact on our families and it is time to take action.”

According to AAA, the average price for unleaded gas in Kentucky is up to a record-high $4.60 per gallon as of Friday, June 3.

Governor Beshear will propose using funds from the upcoming General Fund budget surplus to make up for lost road fund revenues due, which are collected through the state gas tax.

“This action to provide relief to Kentuckians will have no material impact on the transportation budget and projects,” Kentucky Transportation Cabinet Secretary Jim Gray said. “All projects will move forward.”