Governor Kemp Suspends Gasoline Taxes for Georgia in Response to Continuing Oil Price Rises

Toby Hazlewood

Georgia joins Maryland in suspending tax

As the crisis in the Ukraine continues and oil prices remain high, state governors are wondering what can be done to make gasoline more affordable for their citizens.

On March 22, Governor Brian Kemp of Georgia took decisive action, following the lead of Maryland's Governor Larry Hogan, and suspended gas taxes in the state. The reduction will remain in place until May 31.

Following its approval, the governor shared his announcement on Twitter:

On March 22, the national average gas price was $4.24 per gallon according to the American Automobile Association (AAA), up from $3.53 in February, before the Russian invasion of Ukraine.

No end in sight?

The price of oil has varied significantly since the start of the Russian invasion of the Ukraine. It pushed as high as $125 per barrel before dropping again earlier this month. And yet the price of gasoline in the state has rarely come down, only steadily increased.

The reduction in taxes announced by Governor Kemp will provide a little help, but many will be wondering if the price of gas will actually have returned anywhere near to normal by the end of May when the tax break is due to end.

Oil companies celebrate record profits

Perhaps most troubling for Georgia's motorists, struggling with the cost of fuel, is that at the same time prices are going through the roof, oil companies are reporting record profits. In February, oil giant BP reported the highest levels of profit in 8-years - $12.8 billion net profit in 2021.

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Oil priceoilprice.com

Hopefully the cost of oil will reduce once the sanctions against Russia take effect and hopefully, the conflict in the Ukraine ends. Meanwhile, the reduction in gas taxes will provide a little welcome relief for Georgians, who may need to get used to continued high prices for their fuel for the foreseeable future.

Is the rising price of gasoline having an impact in your life? Do you think the tax reductions proposed by Governor Kemp will make enough of a difference? Let me know in the comments section below.

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