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Kentucky Gas Tax Cut Cleared to Start Monday After AG Signs Beshear Order

The 30-day reduction targets a 10-cent drop at the pump with enforcement to ensure stations pass the savings to drivers.

Overview

  • The 10-cent-per-gallon cut, which applies to gasoline and diesel, takes effect May 11 after Attorney General Russell Coleman signed the order as the statewide average price hovers around $4.28.
  • A separate emergency rule freezes Kentucky’s gas tax at 26.4 cents per gallon and prevents a scheduled July 1 increase to 27 cents, with the freeze projected to save about $1.7 million per month.
  • The state activated its price-gouging law to require retailers to pass the tax cut to customers, and the attorney general can pursue stations that try to keep the difference.
  • Coleman accused Gov. Andy Beshear of playing politics but still approved the order, while Ohio’s governor opposes a tax cut and Indiana extended its gas-tax suspension, highlighting split approaches across states.
  • Beshear urged Congress to pause the federal gas tax worth about 18 cents per gallon, and an EPA change taking effect May 27 is expected to lower prices in Jefferson, Bullitt and Oldham counties.