As inflation hits a 3-year high and gas rises to more than $4 a gallon, Kentucky Gov. Andy Beshear said he was taking steps to lower the pain at the pump.
Beshear announced a freeze on the state’s gas tax, while activating the state’s price gouging law and sending two letters to Congress requesting a suspension of the federal gas tax. Additionally, Beshear signed an executive order declaring a state of emergency to reduce the gas tax by 10 cents, and signed a proactive executive order freezing the motor vehicle assessment rate on Jan. 1, 2027.
“The American people are paying the costs of the war, and families are struggling at the gas pump, grocery and more – including right here in Kentucky,” Beshear said. “I recognize the pain our families are feeling and I’m taking steps to help because it’s the right thing to do.”
Beshear’s emergency regulation would freeze the gas tax at 26.4 cents per gallon ahead of an expected increase to 27 cents on July 1. Additionally, Beshear signed an executive order declaring a state of emergency and reducing the gas tax by 10 cents per gallon. That order will need to be signed by the Kentucky Attorney General, however.
“This would be huge for our families, but it requires one step for it to become a reality and that’s sign-off from Kentucky’s Attorney General, based on a Supreme Court case from years ago,” Beshear said. “My hope is that the AG also believes gas prices are too high and will sign quickly so we can deliver results for Kentuckians.”
The action comes just weeks ahead of an anticipated price decrease in Jefferson, Bullitt and Oldham counties. Beshear previously requested the U.S. Environmental Protection Agency (EPA) remove the Louisville area from the federal Reformulated Gasoline Program (RFG), which had resulted in residents in those counties paying between 10 and 25 cents more per gallon. That request was approved in February and the change will take place on May 27, 2026.