Georgia just launched a daring gas price fix, and the rest of the country is watching in disbelief
Will it pay off?
Georgia Governor Brian Kemp just signed a bill suspending the state’s gas tax for the next 60 days, providing some much-needed relief at the pump for residents. This move marks the first state-level action aimed at easing the burden of soaring fuel prices, which have gone absolutely wild because of the ongoing war with Iran.
The new law temporarily waives Georgia’s 33-cent-per-gallon gas tax and its 37-cent-per-gallon diesel tax. That’s a pretty significant chunk of change that will stay in people’s pockets. According to The Hill, Kemp didn’t explicitly link the action to the US-Israeli war on Iran, instead framing it as part of a broader push to make things more affordable for Georgians. He said, “Hardworking Georgians know best how to spend their money, not the government.”
In addition to the gas tax suspension, Kemp also signed another measure authorizing nearly $1.2 billion in state income tax refunds. Qualifying taxpayers can expect to see rebates of up to $250 for single filers and $500 for couples within the next six to eight weeks, according to the Georgia Department of Revenue.
It really seems like the state is trying to give people a break wherever it can
Across the country, the situation isn’t looking great. The national average price for a gallon of gas hit $3.91 on Friday, which is almost a dollar increase from just a month ago. That’s a tough pill to swallow for anyone driving regularly.
Averages are topping $4 per gallon in at least eight states and the District of Columbia, and it’s even spiking above $5 per gallon in places like California, Washington, and Hawaii. These prices are getting uncomfortably close to the record highs we saw in June 2022, back when the Russian invasion of Ukraine was causing similar disruptions.
The Trump administration has been working to roll out policies aimed at tamping down surging oil and gas prices and lowering costs for American consumers. However, those efforts haven’t really taken hold yet, and the war is now nearing its fourth week, keeping pressure on global markets. It’s a tricky situation that clearly needs some effective solutions.
Other states are grappling with whether to follow Georgia’s lead. Florida Governor Ron DeSantis, for example, stated there was “no simple fix” to the problem just last Thursday, signaling he doesn’t plan to suspend Florida’s 23.5-cent gas tax. He believes the answer lies in getting international costs down and ensuring stable energy markets. He said he doesn’t think there will be any simple fix.
While Maryland and Connecticut have floated the idea of pausing their state gas taxes, those proposals haven’t really advanced yet. During the 2022 crisis, several states did temporarily suspend or delay their gas taxes, so it will be interesting to see if more states decide to take similar action this time around as costs continue to skyrocket.
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