Georgia Considers Extending Gas Tax Relief

Georgia Lt. Gov. Burt Jones says he is open to extending the state’s temporary suspension of the gas tax as fuel prices remain elevated.

“I think the logical thing for us to do when it comes up on May 31 would be for us to extend it,” Jones told NBC41. “Gas prices can fluctuate literally by the hour… the barrel of oil is way too high right now,” he said, adding that prices in the state would need to fall significantly before drivers see meaningful relief at the pump.

Georgia Gov. Brian Kemp implemented the gas tax exemption in late March, when heightened geopolitical tensions involving Iran halted oil shipments through the Strait of Hormuz, leading to surging fuel prices worldwide.

“Hardworking Georgians know best how to spend their money, not the government,” Kemp wrote in a press release at the time. “That’s why I’m proud to sign these bills and, along with the General Assembly, deliver meaningful tax relief on top of the other measures we’ve taken in recent years. Because we budget conservatively, we can take steps like these that actually deliver on affordability issues for families in our state.”

Since implementation, the tax suspension has saved Georgia drivers about 33 cents per gallon on gasoline and even more on diesel. However, Jones says the latest market swings could necessitate additional action by lawmakers.

According to AAA, the average gas price in Georgia has exceeded $3.90, with a surge of around 30 cents in the first week of May alone.

E.J. Antoni, Chief Economist for the Thomas Roe Institute for Economic Freedom at for Heritage Foundation, told The Daily Signal the potential move of extending the gas tax relief is “worth pursuing.”

“Provided there will be spending cuts paired with the tax cuts, it’s worth pursuing,” Antoni said. “Otherwise, it’s just more deficit spending by governments which will further burden taxpayers with debt. The best way to lower gas prices would be to wrap up the war with Iran immediately so that global oil markets can begin normalizing.”