Gov. Andy Beshear’s administration filed an emergency regulation to freeze the state gas tax and to prevent a 2-cent increase per gallon that would have taken effect July 1.
The state gas tax is set by statute, both in its rate and how it is calculated. The current rate of 26 cents was set to increase under a trigger, resulting in a price hike on both regular and diesel fuel.
The funds collected through the state gas tax contribute to the Road Fund, which year to date is up 2.3%. Over the first seven months of the fiscal year, this action will reduce the budgeted Road Fund revenues by 1.6%.
To make up for the lost road fund revenues, Gov. Beshear will propose using funds from the upcoming General Fund budget surplus.
Beshear also said he has called upon the federal government to suspend the federal gas tax for the remainder of the year.