Georgia | Economy
Georgia drivers are set to pay more at the pump beginning Tuesday night after Gov. Brian Kemp announced he will allow a temporary gas tax suspension to expire at 11:59 p.m. on June 2.
Kemp originally suspended the state’s fuel tax in March as gasoline prices climbed amid the ongoing conflict in Iran, then signed an extension in May to carry the relief through the Memorial Day holiday weekend. With oil prices now holding at more stable levels, his office confirmed no further renewal is planned.
“With oil prices now holding relatively steady, the gas tax suspension will expire at 11:59 p.m. tomorrow,” a Kemp spokesperson said in a statement to WSB-TV, adding that the state also needs to keep an eye on its finances heading into the new budget year.
What Drivers Can Expect to Pay
The return of the tax is expected to add roughly 33 cents per gallon for regular unleaded and 37 cents per gallon for diesel. AAA data put the statewide average at $3.80 per gallon on Monday while the suspension was still active, meaning most Georgia drivers will likely see prices exceed $4.00 per gallon by Wednesday morning.
The timing adds pressure to household budgets already strained by broader elevated consumer prices across several major categories. Commuters and small businesses that depend on diesel may feel the steeper 37-cent increase most acutely.
Budget Pressures in the Background
The expiration comes as Georgia faces a $1.3 billion revenue shortfall projected for the fiscal year beginning in July, a gap created by an income tax cut Kemp signed into law last month. That fiscal reality appears to have factored into the administration’s decision not to extend fuel tax relief further. Drivers weighing longer-term fuel costs may also want to consider whether switching to an electric vehicle makes financial sense given the shifting price environment.