Gas prices expected to drop soon after Gov. Kemp suspended gas tax

SAVANNAH, Ga. (WTOC) - Paying less at the pump...it’s something we’re all waiting for after Governor Brian Kemp suspended the state tax on gas.

The suspension started Wednesday, but it may take a while for you to notice a change.

A representative from Georgia Governor Brian Kemp’s office says it took about a week for average gas prices to drop in 2022 when the gas tax was suspended. When they did go down, the average decreased 35 cents and got even lower after a month.

So why don’t the prices drop immediately?

The fuel tax is actually a tax on distributors, not consumers. This means distributors won’t collect the tax as long as it is suspended.

But what we’re most likely seeing now is gas stations had already bought the fuel from distributors before the suspension started. So, the tax is already on it.

Governor Brian Kemp says he paused the gas tax to help Georgians out with rampant inflation. It’s something Claudel Gratia says he’s thankful for.

“It’s a great idea. I think we all need a break especially with the price of everything that’s going up. The price of food, mortgage and everything else. I currently have a couple of cars, so I think it will be great for me going back and forth,” said Gratia.

Last year, Governor Kemp did extend the gas tax suspension several times. As of right now, the suspension is set to end on October 12th.

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