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Georgia Becomes First State to Suspend Fuel Taxes for 60 Days as Prices Spike

Officials cast the move as a response to Iran-related price spikes, with economists expecting only limited, short-term relief.

Overview

  • Gov. Brian Kemp signed a law pausing the 33¢-per-gallon gasoline tax and 37¢-per-gallon diesel tax for two months.
  • Georgia is the first state to enact a fuel-tax pause during the current surge in pump prices, according to the Associated Press.
  • State officials estimate the suspension will cost roughly $360 million to $400 million in forgone revenue.
  • Drivers are expected to see lower prices in the coming days as wholesaler discounts reach stations, though outcomes hinge on global oil costs.
  • AAA reports Georgia’s average was $3.79 on Friday versus a $3.91 national average, reflecting sharp increases since late February that are straining fuel-reliant businesses.