NewsCovering Kentucky

Actions

What a federal gas tax suspension could mean for Kentuckians

gas.jpg
Posted at 7:52 AM, Jun 22, 2022
and last updated 2022-06-22 19:21:15-04

(LEX 18) — The federal gas tax is $0.18 a gallon of gasoline and $0.24 cents a gallon of diesel. Kentucky's gas tax is currently frozen at $0.26 a gallon.

With a federal gas suspension, drivers would save about $2.40 on an average size tank. That would save about $7 a month if drivers fill up three times in that time frame.

President Biden officially called for a three-month tax holiday Wednesday morning. White House officials say suspending the federal gas tax through September would cost the government about $10 billion. The move would require congressional approval but Republicans and some Democrats oppose the idea.

A statement from the White House says Biden is also calling on Congress and states to take additional action to provide direct relief to consumers.

Gov. Beshear's administration filed an emergency regulation at the beginning of June to freeze the state gas tax and prevent a $0.02 increase per gallon that would have taken effect July 1. Halting the increase keeps the state's gas tax from raising to $0.28 a gallon.

The national average has dipped below $5 but gas experts don't expect that dip to last because of increased summer travel and the Fourth of July.

According to AAA, Kentuckians are currently paying around $4.70 a gallon for gas. The average price Tuesday was $4.71. A week ago, it was $4.78.

Drivers in Louisville and northern Kentucky continue to pay the most at the pump in the state while Lexington drivers will pay around $4.73 a gallon.