Every stop at the pump is hitting drivers hard. Fuel taxes are making the sting even worse.
As gas and diesel prices climb and conflict in the Middle East keeps pressure on fuel markets, states are looking for ways to give drivers a little breathing room.
So far, Georgia, Illinois, Indiana and Kentucky have stepped in on fuel taxes. More states could be next.
Kentucky
Kentucky Gov. Andy Beshear is keeping his foot on the gas when it comes to fuel tax relief.
He’s extended an executive order that cuts taxes on gas and diesel purchases. However, the extension does not apply statewide.
In early May, Beshear signed orders to slash fuel taxes and cancel a planned tax hike.
He said the war in Iran was one reason drivers needed help.
At the time, Kentucky’s average diesel price was $5.17 per gallon. According to TruckMiles, it’s now down to $4.80.
Kentucky normally charges 26.4 cents per gallon in gas taxes. The diesel rate is 23.4 cents. Those rates rise and fall with fuel prices.
Since the tax holiday took effect, drivers have been saving 10 cents per gallon. Gas taxes dropped to 16.4 cents, while diesel taxes fell to 13.4 cents.
The executive order lasted 30 days. The length of time is the longest the state allows.
With the fuel tax break set to expire June 10, Beshear signed another order extending it through June 30.
“Gas prices are too high due to the continued war in Iran, and Americans – including right here in Kentucky – are struggling,” Beshear said. “Every dollar counts, and my executive order lowered gas and diesel prices across the state to help our families save.”
Kentucky law requires local governments to request an extension beyond 30 days.
Only 33 cities and counties asked for more time. Hundreds of others allowed the tax cuts to expire on June 10.
Officials say extending the tax break means less money for road repairs and infrastructure projects.
Kentucky drivers also caught another break. A scheduled fuel tax increase set for July 1 has been canceled.
Indiana
Indiana motorists are getting another round of relief at the gas pump.
Gov. Mike Braun has once again extended the state’s gas tax holiday. Truckers and other diesel users, however, are again left out of the break.
In April, Gov. Mike Braun declared an emergency and paused Indiana’s 7% gas usage tax.
At the time, the tax was 17.2 cents per gallon. Without the holiday, it would now sit at 23 cents.
The tax moves up and down with fuel prices. The tax is based on the statewide average gas price and retail tax rate.
It also stacks on top of Indiana’s 36-cpg gas excise tax.
The original tax break was scheduled to end on May 8.
Before the deadline, Braun extended the holiday through June 7. He also suspended the state’s gas excise tax.
He said the move would double the savings drivers see every time they fill up.
His latest extension keeps the gas tax break in place through July 7.
State law limits emergency declarations to 60 days. Governors can renew them once for up to 120 days.
Any extension beyond that would require approval from lawmakers. LL
More Land Line coverage of state news is available.
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