The Georgia Senate unanimously approved a 60-day suspension of the state’s gas tax Thursday, sending the measure to Gov. Brian Kemp’s desk as pump prices surge across the state. The bill cleared the House a day earlier with overwhelming support.

The suspension would eliminate Georgia’s 33.3 cents per gallon tax on gasoline and 37.3 cents per gallon on diesel. The measure was added as an amendment to HB 1199, an annual bill that aligns state tax code with federal IRS rules.

Whether Kemp will sign remains unclear. Earlier this month, he told reporters he doesn’t want to overreact to what may be a short-term price spike. The governor has suspended the gas tax three times before—in 2022 during the Ukraine war, in 2023 amid high inflation, and in 2024 following Hurricane Helene.

Georgia’s average gas price hit $3.75 per gallon Thursday, up 30.5 cents from the previous week, according to GasBuddy. Metro Atlanta saw prices climb to $3.79 per gallon, up 33.2 cents weekly and $1.09 over the past month from $2.70.

The price surge stems from disruptions at the Strait of Hormuz, where Iran has restricted passage through the critical oil shipping route. About 20 million barrels of oil traveled through the strait each day in 2024, according to the U.S. Energy Information Administration.

For a typical driver filling a 30-gallon tank, the suspension would save roughly $10 per fill-up. Trucking companies and agricultural operations that rely heavily on diesel could see more substantial relief from the 37.3 cent per gallon suspension.

State Rep. Akbar Ali said in a press release the move uses state surpluses to “protect residents from economic forces beyond their control” and provide “immediate relief for families.”

Georgia’s gas tax suspensions differ from the executive orders Kemp issued previously. Those actions came directly from the governor’s office, while the current measure represents a legislative approach with broader political buy-in.

The 2022 suspension lasted the longest, running from March 2022 to January 2023—roughly 10 months—as prices topped $4 per gallon during the Ukraine conflict. The 2023 suspension ran from September to November during a period of persistent inflation. Last year’s suspension lasted just two weeks in October following Hurricane Helene’s impact on the Southeast.

“While the state has used a suspension of the gas tax very effectively in the past, it had been targeted and strategic,” Kemp said in earlier remarks about the approach.

Georgia funds these suspensions through budget surpluses rather than raising other taxes or cutting services. The state collected enough revenue in recent years to absorb the temporary loss of gas tax income without affecting transportation funding, though some critics have raised concerns about long-term road maintenance budgets.

AAA reported Georgia’s average at $3.76 Thursday morning, below the national average of $3.88. Daily price increases have averaged 1.8 cents statewide, with metro Atlanta seeing 2.1 cent daily jumps.

If Kemp signs the bill, the effects would appear quickly at gas stations across the state, based on the speed of previous suspensions. The 60-day window means prices could rebound in late May if global oil markets remain unstable.

The Strait of Hormuz disruption echoes the 2022 situation when Russia’s invasion of Ukraine sent global energy markets into turmoil. Iran’s control over the waterway has created similar supply uncertainty, though the scale and duration remain different from the Ukraine crisis.

Businesses that depend on transportation—including logistics companies, delivery services, and agricultural operations—stand to benefit from lower diesel costs during the suspension period. Lower freight costs could provide modest relief on consumer goods prices, though the 60-day limit may prevent significant downstream effects.

The suspension would end automatically after 60 days unless lawmakers pass an extension. Previous suspensions required either new executive orders or legislative action to continue beyond their initial terms.

Source: Georgia Senate approves 60-day gas tax suspension, Kemp to sign off Friday | WRDW