ATLANTA — Gov. Brian Kemp suspended the state’s tax on gas and diesel fuel today, declaring “a state of emergency due to the 40-year-high inflation and negative economic conditions felt by hardworking Georgians as a result of policies coming out of Washington, D.C.”

The governor’s executive order goes into effect Wednesday and will remain in effect until Oct. 12. Kemp can only suspend the tax one month at a time as part of the executive order.  

Kemp said President Joe Biden’s economic policies made the executive order necessary.

“From runaway federal spending to policies that hamstring domestic energy production, all Bidenomics has done is take more money out of the pockets of the middle class,” Kemp said. “While high prices continue to hit family budgets, hardworking Georgians deserve real relief and that’s why I signed an executive order today to deliver it directly to them at the pump.”

Kemp cited analysis from Moody’s Analytics from August that said U.S. consumers are spending $709 more per month than two years ago and $202 more each month than last year to buy the same goods and services.

Georgians will save 31.2 cents on a gallon of gasoline and 35 cents on diesel fuel, he said, adding that Georgians saved roughly $1.7 billion at the pump when fuel taxes were suspended from March to December last year.

House Speaker Jon Burns, R-Newington, supported Kemp’s order and also framed it in a political context.

“I applaud Governor Kemp’s suspension of motor fuel taxes to keep our people and our economy moving despite Washington’s inaction on rising fuel prices,” said Burns. “Georgia’s success story is no accident — it is the result of conservative policies enacted to keep Georgia the nation’s best state for business.”

According to AAA, the average cost of a gallon of regular gas in Georgia on Tuesday was $3.57, up from $3.24 a year ago. Diesel fuel was $4.35 a gallon, down from $4.69 a year ago.

Overall, inflation has been ebbing in the U.S. over the past year. A report from the Federal Reserve in August noted that while the consumer price index (CPI) in July was up 3.3% from a year earlier, that level is far below the peak rate of 8.9% in the 12 months that ended in June 2022. 

Energy prices in the South have decreased 12.8% from July 2022 to July 2023, largely due to a 20% drop in the cost of gasoline, while food prices rose 5.1%.

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Header photo: Gov. Kemp’s executive order to suspend fuel taxes will save Georgians 31 cents on a gallon of regular gasoline and 35 cents on diesel fuel through mid-October. (Credit: Jill Jordan Sieder).