Drivers are getting crushed every time they fill up – and fuel taxes are part of the damage.
As gas and diesel prices keep climbing and conflict in the Middle East pushes costs higher, more states are weighing whether to step in with relief at the pump.
A possible break from the federal fuel tax is also being discussed.
Georgia and Indiana were the first states this year to slash fuel taxes. Kentucky has now joined the list.
Georgia
While some states are debating fuel tax relief, Georgia is already extending its break at the pump.
Normally, drivers in the state pay 33.3 cents per gallon for gas and 37.3 cents for diesel.
Back in March, Gov. Brian Kemp signed a bill to temporarily stop collecting those taxes.
The move originally suspended the gas and diesel taxes through May 19.
With that deadline getting close, Kemp signed an executive order to stretch the break another two weeks. The tax holiday now lasts through June 3.
In Georgia, the governor must use executive orders when lawmakers are not in session.
“Along with our partners in the legislature, we’ve remained committed to giving hardworking Georgians relief wherever able, and this action is another fulfillment of that promise,” Kemp said.
Even with the tax break, diesel prices have only dropped slightly. TruckMiles says the average diesel price in Georgia is now $5.06. The price is down about 7 cents since the fuel tax holiday started.
The suspension does not cover local sales or use taxes.
As families prepare for the Memorial Day travel weekend, they shouldn’t feel blindsided by prices at the gas pump. With our partners in the legislature, we’ve remained committed to giving hardworking Georgians relief wherever able, and this extension is another fulfillment of… pic.twitter.com/ZJzVIT8smq
— Governor Brian P. Kemp (@GovKemp) May 15, 2026
IFTA fuel tax break
Truckers are also getting extra relief through the International Fuel Tax Agreement.
Georgia officials say motor carriers licensed under IFTA don’t have to pay the state’s motor fuel excise tax during the holiday.
That means truckers can buy qualifying fuel tax-free and log miles in Georgia without paying the state fuel tax on those miles.
But drivers still have paperwork to handle. IFTA reports must still be filed, and truckers must keep records of both taxed and tax-free fuel purchases.
Miles driven in Georgia between March 20 and June 3 must be reported as non-IFTA miles.
Oregon
Oregon voters on Tuesday slammed the brakes on a gas tax increase pushed through by state lawmakers.
Last year, Gov. Tina Kotek signed a transportation bill into law packed with higher vehicle taxes and fees.
Republican lawmakers pushed back hard against the increases. Soon after, they launched a referendum to let voters decide the fate of the transportation package.
Several of the new taxes and fees were frozen until voters cast ballots this week.
The biggest tax increase on hold was a 6-cent jump in Oregon’s gas tax. The rate was set to climb from 40 cents to 46 cents per gallon on Dec. 31, 2025.
Voters crushed the proposal, rejecting the tax and fee hikes by an 83% to 17% margin.
Oklahoma
After President Donald Trump called on Congress to suspend the federal fuel tax, Oklahoma lawmakers worked fast – getting to work on a bill less than a week ago to make sure drivers in the state would actually feel the savings.
Oklahoma law says state fuel taxes automatically rise by the same amount as any federal cut to gas or diesel taxes.
The federal gas tax is 18.4 cents per gallon. The diesel rate is 24.4 cents.
On Monday, Gov. Kevin Stitt signed a bill wiping out the little-known rule.
“Should President Trump move to suspend the federal gas tax, Oklahomans will now truly benefit from this relief due to rapid action taken today at the Capitol,” Stitt said.
West Virginia
Pressure is building in West Virginia to pass a fuel tax holiday.
State Treasurer Larry Pack has called for a special session of the legislature to take action.
“President Donald Trump is looking for ways to provide much-needed relief to working-class Americans. We should follow his lead by suspending our state gas tax,” Pack said.
Pack also said that if lawmakers approve a fuel tax break, he wants any lost road funding replaced using surplus money from the state’s general revenue fund.
Members of the House Finance Committee are meeting at the Capitol this week. One of the topics of discussion is the state’s fuel tax.
West Virginia’s 35.7-cent tax rate is made up of two parts: a fixed tax and a variable tax.
The fixed rate is 20.5 cents for both gas and diesel. The variable portion adds another 15.2 cents.
Gov. Patrick Morrisey would have to call a special session before a fuel tax holiday could happen.
It is still unclear whether diesel would be included in any future tax break.
On Monday, State Treasurer Larry Pack called for a suspension of the state gas tax to offset increasing gas prices due to the conflict in Iran. President Donald Trump is considering a similar proposal at the federal level, according to several media outlets. If a suspension of… pic.twitter.com/rdWZVG58Xg
— WV Treasury (@WVTreasury) May 13, 2026
Utah
Many Utah drivers could soon see some relief at the pump.
Gov. Spencer Cox signed a bill earlier this spring that cuts the state gas tax. Diesel taxes, however, will stay the same.
Starting July 1, Utah’s 39-cent gas tax will drop by 15%. That works out to about a 6-cent cut. The tax will be lowered to roughly 33 cents per gallon.
The diesel tax will remain at 37.9 cents.
State budget money will cover the cost of the gas tax cut.
The tax break is also tied to a larger plan to expand pipelines, add fuel storage and help refineries boost output when demand spikes.
State leaders say changes could add nearly 800,000 more gallons of fuel to the market every day. LL
More Land Line coverage of state news is available.
Credit: Source link
