Kentucky governor temporarily freezes gas tax, preventing 2-cent hike

The price of gas at a Marathon convenience store on Breckinridge Lane in Louisville, Kentucky.  March 7, 2022

Kentucky Gov. Andy Beshear is taking action to prevent a 2-cent-per-gallon increase in the state gas tax Kentuckians pay at the pump, which otherwise would be triggered by the recent rise in gas prices.

Gas costs just over 50% more in the commonwealth than it did a year ago, the governor said, with the average price hitting $4.31 per gallon as of May 31 compared to $2.85 about a year ago.

Beshear said his administration is instituting an emergency regulation Thursday to freeze Kentucky’s state gas tax. Without that, the tax rate of 26 cents per gallon would jump to 28 cents per gallon on July 1 because of a quirk of state law.

“Under Kentucky statute, there is a formula whereby, when the average wholesale price of gas goes up a certain amount, the gas tax goes up as well,” he explained.

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