Republican Governor Signs Bill Suspending State Gas Tax Amid Iran War Price Spike

Georgia Gov. Brian Kemp (R) on Friday signed legislation suspending the state’s gas tax for 60 days, making Georgia the first state to take action to ease pain at the pump as fuel prices surge amid escalating strikes involving Iran.

The measure temporarily waives Georgia’s 33-cent-per-gallon gas tax and 37-cent-per-gallon diesel tax. It is one of two bills passed by state lawmakers this week aimed at providing financial relief to residents.

Kemp also signed a second law authorizing nearly $1.2 billion in state income tax refunds. Eligible taxpayers are expected to receive rebates — up to $250 for individuals and $500 for couples — within six to eight weeks, according to the Georgia Department of Revenue.

“Hardworking Georgians know best how to spend their money, not the government,” Kemp said in a statement. “That’s why I’m proud to sign these bills, and along with the General Assembly, deliver meaningful tax relief on top of the other measures we’ve taken in recent years.”

While Kemp did not explicitly link the measures to the Middle East conflict, instead framing them as part of a broader affordability effort, the timing coincides with growing economic disruption tied to the escalating strikes.

The Trump administration has introduced several policies aimed at curbing rising oil and gas prices and lowering costs for consumers, though those efforts have yet to show results as the conflict enters its fourth week.

The national average price of gas climbed to $3.91 per gallon on Friday — nearly $1 higher than a month ago — according to AAA. Prices have surpassed $4 per gallon in at least eight states and Washington, D.C., and have exceeded $5 in California, Washington, and Hawaii.

Costs are approaching the record highs seen in June 2022 following Russia’s invasion of Ukraine, when several states temporarily suspended gas taxes. It remains unclear how many states will follow Georgia’s lead this time.

Lawmakers in Maryland and Connecticut have floated similar proposals, though neither has advanced.

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Nancy Butler

Nancy grew up in the South where her passion for politics first began. After getting her BA in journalism from Ole Miss she became an arts and culture writer for Athens Magazine where she enjoyed reporting on the eclectic music and art scene in Athens, GA.

However, her desire to report on issues and policies impacting everyday Americans won out and she packed her bags for Washington, DC. Now, she splits her time between the Nation’s Capital and Philadelphia where she covers the fast-paced environment of politics, business, and news.
In her off time, you can find Nancy exploring museums or enjoying brunch with friends.

2 Comments
    Bill

    Lawmakers in Maryland and Connecticut have floated similar proposals on gas prices, though neither has advanced they probably will not, those states are controlled by democrats.

    Philip Baker

    Hochul and her dem legislature would NEVER do that in NY. It might cut into their scam-defence fund or vacation money.

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