Kentucky’s state gas tax is set to decrease to 26.4 cents per gallon on July 1. Gov. Andy Beshear announced the drop Thursday saying those savings can add up for families.
“Whether you’re driving to school, to work, headed to church, or headed out on a family trip, at least here in Kentucky your gas is going to cost a little bit less starting July 1st,” Beshear said. “We’re going to keep looking for every way to save our families that next dollar to help pay that next bill.”
The decrease represents a 12% decrease over the last two years after a high of 30.1 cents. That sum was relatively high for Kentucky. The new rate is still slightly higher than it was in 2022.
Under state law, the gas tax tracks with the average wholesale price of gas via a formula. The funds are deposited into the state road fund, from which counties also receive a portion. The fund pays for road maintenance and construction.
The second-term Democratic governor has previously butted up against the Republican supermajority over the gas tax. After attempting to freeze the tax at its current rate in 2022 to avoid an increase, the legislature failed to extend the freeze, allowing the rate to increase.
As of January, Kentucky’s gas tax was just below the average state tax cost, according to the Energy Information Administration. Including federal and over taxes, the overall tax on gasoline in Kentucky is 46 cents per gallon, also a few cents below the national average.
State government and politics reporting is supported in part by the Corporation for Public Broadcasting.
