KENTUCKY (WEHT) – Governor Andy Beshear’s administration filed an emergency regulation to freeze the state gas tax on Thursday to prevent a 2-cent increase per gallon that would have taken effect July 1.
The state gas tax is set by statute, both in its rate and how it is calculated. A press release from Governor Beshear says the current rate of 26 cents was set to increase under a trigger, resulting in a price hike on both regular and diesel fuel.
“Kentuckians cannot afford to pay more, and I am committed to doing everything I can to help keep more dollars in people’s pockets,” said Governor Beshear. “This law was never intended to hurt Kentuckians during tough times, but with rising prices and inflation, this increase would have a negative impact on our families and it is time to take action.”
The funds collected through the state gas tax contribute to the road fund, which year to date is up 2.3%. Governor Beshear says he will propose using funds from the upcoming general fund budget surplus.