FRANKFORT, Ky. (LEX 18) — Kentucky is cutting its gas tax by 10 cents per gallon starting Monday under an emergency order signed by Gov. Andy Beshear, as the average price of gas in the state sits at $4.28 per gallon.
Beshear said companies are not allowed to pocket the difference from the tax reduction.
"We ought to see a ten cent reduction on May 11. And if these companies try to pocket the money, I've implemented the price gouging statute and the attorney general can directly go after them for the benefit of Kentuckians," Beshear said.
Even with the reduction, gas prices will remain significantly higher than a year ago, when the average gallon of gas in Kentucky cost $2.85.
Beshear has called on Congress to suspend the federal gas tax to provide further relief. If Congress acts, it would save Kentuckians an about an addition 18 cents per gallon, bringing the total reduction to nearly 30 cents per gallon.
As of Thursday, Beshear said he had not heard back from Congress.
"Remember if they can spend a billion dollars a day in the Middle East, they ought to be able to help our families with the impact of what they're doing in the Middle East — it could save another 18 cents. That's what the federal gas tax is in the price of gas in Kentucky. So that could help 28 cents per gallon," Beshear said.
The emergency order lasts 30 days. After that, Beshear said he will work with local judge executives and mayors to keep the reduction in place.
