Kemp signs bill suspending Georgia state gas tax amid Iran war price spike

Georgia Gov. Brian Kemp (R) on Friday signed a bill that suspends the state gas tax for 60 days, marking the first state-level action aimed at bringing relief at the pump as fuel prices soar amid the war with Iran.

The bill, which temporarily waives Georgia’s 33-cent-per-gallon gas tax and 37-cent-per-gallon diesel tax, was one of two laws passed by state lawmakers this week meant to save taxpayers money.

Kemp also signed the other measure into law, which authorizes the return of nearly $1.2 billion in state income tax refunds. Qualifying taxpayers are expected to receive that rebate — ranging from up to $250 for single people and $500 for couples — within six to eight weeks, according to the Georgia Department of Revenue.

“Hardworking Georgians know best how to spend their money, not the government,” Kemp said in a statement. “That’s why I’m proud to sign these bills, and along with the General Assembly, deliver meaningful tax relief on top of the other measures we’ve taken in recent years.”

Kemp did not explicitly tie the actions to the conflict in the Middle East, framing them instead as part of a broader affordability push. But they come as escalating strikes in the region are causing major disruptions in the global economy.

The Trump administration has rolled out several policies to try to tamp down surging oil and gas prices and lower costs for American consumers, but their efforts have yet to take hold as the war nears its fourth week.

The national average price for a gallon of gas reached $3.91 on Friday, a nearly $1 per gallon increase from a month ago, according to AAA. The average in at least eight states and the District of Columbia topped $4 per gallon, spiking above $5 per gallon in California, Washington and Hawaii.

Prices are inching closer to the record high set in June 2022 amid the Russian invasion of Ukraine. During that time, several states delayed or suspended their state gas taxes, but it remains to be seen how many will take a similar course of action faced with skyrocketing costs again.

The Associated Press reported that Florida Gov. Ron DeSantis (R) said on Thursday there was “no simple fix” to the problem, signaling he had no plans to suspend the state’s 23.5-cent gas tax.

“My answer is just get the cost down internationally, and that means having stable energy markets, making sure we’re doing everything to get our stuff to market,” DeSantis said. “But I don’t know that there’s going to be any simple fix.”

The idea of a pause has also been floated in Maryland and Connecticut, but those proposals have not advanced yet, according to the AP.

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