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Beshear Freezes Kentucky Gas Tax, Orders 10-Cent Cut Pending AG Sign-Off

The action seeks fast relief at the pump through emergency powers.

Overview

  • Gov. Andy Beshear, who declared a state of emergency Tuesday, ordered a 10-cent-per-gallon tax cut that takes effect May 11 if Attorney General Russell Coleman signs it.
  • The state rate is frozen at 26.4 cents per gallon to stop a planned July 1 rise to 27 cents, which the administration projects would save about $1.7 million each month.
  • Kentucky activated its price-gouging law to push fuel retailers to pass the tax savings to drivers instead of keeping the difference.
  • Coleman called the move political but said he will sign and publish the order before May 11 so the cut can take effect.
  • Beshear asked Congress to suspend the federal gas tax, and a separate EPA change on May 27 will end a costlier gasoline requirement in Jefferson, Bullitt, and Oldham counties.