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Governor Beshear freezes gas tax, activates price gouging laws amid rising fuel costs

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FRANKFORT, Ky. (LEX 18) — Kentucky Gov. Andy Beshear signed an emergency order Tuesday to reduce the state gas tax by 10 cents per gallon, a move that could take effect as early as May 11.

The average price of a gallon of gas in Kentucky is currently $4.28, up from $2.85 a year ago, according to the governor's office.

"Every dollar matters. Affordability is not a hoax," Beshear said. "Saving families ten cents per gallon at the pump right now is the right thing to do. It benefits all Kentuckians."

The reduction requires sign-off from Attorney General Russell Coleman. Coleman's office confirmed he will sign the order, putting the 10-cent cut on track to take effect by May 11.

For some Kentuckians, the relief cannot come soon enough. Chase Rinehart, who works at a landscape company, said the high gas prices are hitting the business hard.

"That'll be great for us. We're a landscape company so we use gas every day. I mean, our clients end up feeling that. We feel it as a company, so it'd help us out a lot," Rinehart said.

Rinehart said it costs $150 to currently fill up his landscaping truck, so any relief is welcome news.

"Cheap gas is good gas," he said.

In addition to the 10-cent reduction, Beshear signed a separate emergency order to freeze the gas tax, preventing it from increasing in July.

Beshear is also calling on Congress to suspend the federal gas tax, which he says would lower prices by an additional 18.4 cents per gallon. That would bring the savings in Kentucky to about 28.5 cents per gallon.

"28.5 cents per gallon will make a big difference for people - and that's both diesel and gas," Beshear said.

The governor also signed an order to freeze the motor vehicle assessment rate at the start of next year, which will prevent motor vehicle taxes from increasing in 2027.

Beshear said he will reverse his actions if gas prices fall, but cautioned that relief may not come quickly.

"We are seeing and are going to see inflated gas prices because of the war in Iran for at least months to come. I just want to provide the relief that I can," Beshear said.

Other states like Indiana have taken similar action.

Attorney General Russell Coleman responded to Beshear's gas tax freeze stating:

"Of course Kentuckians should have lower gas prices. But Governor Beshear has vetoed almost every tax cut that’s come to his desk. Now, he’s just playing politics and running for President. Kentuckians stand with President Trump, and they’re not buying what the Governor is selling.”