Governor Beshear freezes gas tax, activates price gouging laws amid rising fuel costs
FRANKFORT, Ky. (ABC 36 NEWS NOW) — Gov. Andy Beshear took several steps Tuesday to provide relief to Kentucky families as gas prices continue to rise.
Beshear signed an emergency regulation to freeze the state gas tax, activated Kentucky’s price gouging laws, and sent letters to Congress asking lawmakers to suspend the federal gas tax.
Beshear also signed an executive order declaring a state of emergency to reduce the gas tax by 10 cents per gallon and signed a separate executive order to freeze the motor vehicle assessment rate ahead of an expected increase on Jan. 1, a release from Beshear read.
“The American people are paying the costs of the war, and families are struggling at the gas pump, grocery and more – including right here in Kentucky,” Beshear said. “I recognize the pain our families are feeling and I’m taking steps to help because it’s the right thing to do.”
The emergency regulation freezes the gas tax at 26.4 cents per gallon ahead of an expected increase to 27 cents per gallon on July 1. The freeze is projected to save Kentuckians about $1.7 million combined each month, Beshear reported.
The executive order declaring a state of emergency would reduce the gas tax by an additional 10 cents per gallon, with the potential to save Kentuckians $26.8 million combined over a one-month period. However, the order requires sign-off from Kentucky’s Attorney General before it can take effect.
“This would be huge for our families, but it requires one step for it to become a reality and that’s sign-off from Kentucky’s Attorney General, based on a Supreme Court case from years ago,” Beshear said. “My hope is that the AG also believes gas prices are too high and will sign quickly so we can deliver results for Kentuckians.”
Beshear activated the state’s price gouging statute alongside the executive order to ensure fuel providers pass the 10-cent reduction on to consumers rather than keeping it.
The governor also sent two letters to congressional leadership and members of Kentucky’s congressional delegation urging them to suspend the federal gas tax through the end of the year.
“These leaders have a real chance to help our people when they desperately need relief, and I pray they can put politics aside and take a long, overdue step to help American families,” Beshear said.
The actions come weeks ahead of an expected price decrease in Jefferson, Bullitt and Oldham counties, the release reported. In February, the U.S. Environmental Protection Agency approved Beshear’s request to remove the Louisville area from the federal Reformulated Gasoline Program. For 30 years, residents in those counties paid 10 to 25 cents more per gallon. The change takes effect May 27.
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.”
