Every trip to the pump is taking a bigger bite out of drivers’ wallets – and fuel taxes are adding to the pain.
With gas and diesel prices climbing and tensions in the Middle East helping drive costs even higher, states are taking action to give at least some drivers a break.
A possible suspension of the federal fuel tax is also being considered.
Georgia and Indiana were the first states this year to cut fuel taxes. Kentucky soon followed, adding more momentum to the push for relief at the pump.
Kentucky
Kentucky Gov. Andy Beshear is keeping pressure on fuel prices by extending parts of the state of emergency he declared last month.
When he announced fuel tax relief in early May, Beshear pointed to the ongoing war in Iran as one reason drivers needed help.
At the time, Kentucky’s average diesel price was $5.17 per gallon. According to TruckMiles, the rate has since dipped to 5.09.
On May 5, Beshear signed executive orders cutting state fuel taxes and canceling a planned tax increase.
Kentucky normally collects 26.4 cents per gallon in gas taxes. The diesel rate is 23.4 cents. Those rates fluctuate with fuel prices.
Since May 11, drivers have gotten a 10-cent break, lowering the tax to 16.4 cents for gas and 13.4 cents for diesel.
The state also scrapped a fuel tax adjustment that was scheduled to kick in on July 1.
Last week, Beshear extended the state of emergency targeting price gouging. He said he wanted to make sure fuel providers didn’t simply pocket the extra 10 cents per gallon.
Gas prices have dropped by 10 cents in Kentucky following my executive order to reduce the gas tax. Every step counts when prices are rising and hurting our families, and this action is set to save Kentuckians nearly $27 million in one month. pic.twitter.com/t5U6P4PHdw
— Governor Andy Beshear (@GovAndyBeshear) May 13, 2026
Illinois
Truckers and others in Illinois just caught a break at the pump.
A fuel tax hike that was set to make every fill-up costlier has been put on hold.
Illinois fuel taxes usually go up every summer. The increases are due to rates being tied to inflation.
Another increase was scheduled to kick in on July 1.
Instead, lawmakers hit the brakes. A new state budget approved by lawmakers and signed by Gov. JB Pritzker freezes the planned tax increase.
The governor’s office said the move was needed because families and businesses are already dealing with higher costs caused by economic uncertainty and rising energy prices.”
Without the change, gas and diesel tax rates would have climbed another 1.3 cents.
Now, drivers will get a little breathing room. The state’s 55.8-cent diesel tax will stay where it is through the end of the year. The same goes for Illinois’ 48.3-cent gas tax rate.
Indiana
Another extension of Indiana’s gas tax holiday could be around the corner. Diesel, however, remains excluded from the conversation.
In April, Gov. Mike Braun issued an emergency declaration to pause the state’s 7% gas usage tax.
At the time, the tax stood at 17.2 cents per gallon. Although drivers are not paying it during the holiday, the rate would now be 23 cents.
The usage tax rises and falls with gas prices. It is calculated using the statewide average gas price and the state retail tax rate.
It also stacks on top of Indiana’s 36-cpg gas excise tax.
The original tax holiday was set to end on May 8.
Before the deadline arrived, Braun extended the break through June 7. He also suspended the gas excise tax.
Braun said the move would double the savings drivers see at the gas pump.
Now, he is weighing another extension. The third round would run through early August.
State law limits fuel tax suspensions to 60 days unless lawmakers approve an extension.
However, top lawmakers argue Braun already has the authority to continue suspending the excise and sales tax beyond that limit without legislative approval.
Affordability is my top priority.
The aggressive actions that I’ve taken to lower gas prices are working. https://t.co/of3lHczzZP
— Governor Mike Braun (@GovBraun) May 27, 2026
Florida
Florida could still join the growing list of states debating fuel tax relief.
After initially dismissing the idea of a gas tax holiday, Gov. Ron DeSantis recently changed course.
Over the past week, DeSantis said he would support suspending Florida’s 22-cent gas tax if lawmakers send him a bill to do it.
So far, lawmakers have chosen not to move forward with a tax holiday.
Critics say fuel tax suspensions do little to bring lasting relief at the pump. LL
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