Gas prices across the country are soaring as a result of the war between the U.S, and Iran, and on Tuesday, Governor Andy Beshear announced the issuance of a state of emergency declaration and a few executive orders with the goal of lowering gas prices in Kentucky.
Beshear says gas prices are currently averaging $4.28 per gallon in Kentucky, while a year ago, a gallon of gas cost an average of $2.85. Diesel fuel prices are currently averaging $5.32,which is an increase of $2 over last year’s average.
The spike in gas prices has also had broader economic impacts. Beshear says inflation is at the highest level it has been over the past three years, and families are feeling the pain.
To help lower gas prices, Beshear signed an emergency regulation to freeze the state gas tax and to prevent a price hike on July 1. The current gas tax is 26.4 cents per gallon, and on July 1, it was expected to increase to 27 cents. Beshear says the tax freeze is expected to save Kentuckians around $1.7 million monthly.
Beshear also signed an executive order declaring a state of emergency to lower gas prices. The order will lower the gas tax by 10 cents per gallon, but Beshear says it must first be approved by Kentucky Attorney General Russell Coleman.
Along with the state of emergency, Beshear activated the state’s price gouging laws to further enforce the gas tax reduction and signed another executive order to freeze the motor vehicle assessment rate, which was expected to increase on January 1, 2027.
Beshear says the steps being taken to lower gas prices will impact the state road fund as well as some of the funds designated for city and county governments.
Then, on the federal level, Beshear says he sent two letters to leaders in Congress and Kentucky’s congressional delegation urging them to suspend the federal gas tax until the end of the year, which would lessen gas prices by 18.4 cents per gallon.