On Tuesday, Governor Brian Kemp engaged with the press at the Capitol, discussing key issues such as fluctuating gas prices and the potential suspension of Georgia’s gas tax.
In Atlanta, Governor Kemp considered the option of halting the gas tax in response to oil price volatility triggered by the conflict in Iran. He expressed an intent to closely monitor the market dynamics, though he refrained from making any immediate commitments.
In the past, Governor Kemp has suspended the gas tax on three occasions. The initial suspension occurred from March 2022 to January 2023 due to gas prices exceeding $4 per gallon. He enacted another pause between September and November 2023, citing inflation concerns, and once more for a brief period following Hurricane Helen in 2024.
Addressing reporters post an event that focused on disaster block grant funding for Helene, Kemp was questioned about the likelihood of a fourth suspension amid significant price surges linked to events in Iran.
Currently, the national average for gas has risen from below $3 to approximately $3.50, following military actions by the U.S. and Israel in Iran. Although oil prices initially soared to $115 per barrel, they have since decreased to around $80, reflecting market stabilization over the past day or two.
Governor Kemp conveyed a cautious approach, stating he preferred to assess the evolving situation before deciding on another gas tax suspension.
“We’ve done that very effectively in the past, but they’ve been very targeted and strategic,” the governor said. “We also have not overreacted to something that potentially could be a short-term blip, so we’re gonna continue to watch things. I mean oil prices shot up to $115 a barrel 24 or 48 hours ago and now they’re back down to $90. I know the president’s very focused on this issue.”
Kemp said he thinks oil producers will “shift and use different trade routes, it’ll be very effective, and the good thing is because of energy policies right now in the United States of America, we’re pumping a record amount of oil and natural gas which has made us energy independent.
“Now, we’re subject to global markets but from an energy security standpoint and long-term economic viability, I think we’re in a really good place, but we’re just gonna continue to watch the market for a few more days and then, you know, we’ll monitor that as we go.”
The governor’s full comments are available in the video player above this story.
