Kemp suspends Georgia’s gas tax again as fuel prices surge

The governor of Georgia, Brian Kemp, has once again suspended the state fuel tax in response to the sharp rise in gasoline and diesel prices. Through an executive order, the governor declared a state of emergency "due to global market volatility." The measure will remain in effect until Oct. 29.

According to data cited by the governor's office when announcing the measure, the average price of gasoline in Georgia stands at $4.19 per gallon, nearly 30 cents below the national average, though well above the $2.88 recorded in the state a year ago, according to the American Automobile Association (AAA). Meanwhile, diesel is priced at $6.35 per gallon, about 20 cents less than the national average.

Prices for both fuels have risen over the past seven months since the start of the conflict between the United States, Israel and Iran. The escalation led the Iranian government to restrict passage through the Strait of Hormuz -- through which approximately 21% of the world's oil consumption travels -- which put strong upward pressure on prices.

Georgia currently levies a tax of 33.3 cents per gallon of gasoline and 37.3 cents per gallon of diesel. During the 30-day suspension, retailers will not be required to pay this state tax. According to the Atlanta Journal Constitution, the decision will cost the state $200 million per month.

In a statement, Kemp announced that he would also temporarily suspend state weight limits for commercial vehicles. The goal is to reduce the costs associated with freight transportation and to help mitigate the impact of higher fuel costs on everyday goods.

"Over the past several years, with the help of our partners in the General Assembly, we've been able to give billions of dollars in relief to hardworking Georgians. We've remained committed to helping them and our small businesses fight through the tough times, and that's why I'm taking this action today to give further relief," said the governor of Georgia.

For his part, Georgia's Commissioner of Agriculture, Tyler Harper, stated that the announcement "means immediate relief for Georgia families struggling to afford gas and groceries and Georgia farmers facing diesel prices that have more than doubled in recent weeks."

Kemp's decision marks the second suspension of the state fuel tax in Georgia this year. In March, the General Assembly approved a 60-day suspension in response to rising prices. Kemp then signed the legislation that temporarily eliminated the tax from March 20 through May 19. Subsequently, the governor extended the suspension via executive order through June 3.

According to the Georgia government, the March suspension saved drivers, businesses and carriers nearly $400 million during the first 60 days.