Georgia's $14.6 Billion Surplus Is Covering Your Gas Tax Break

Georgia drivers are paying less at the pump after Gov. Brian Kemp's latest state gas tax suspension, which is fueling questions about road funding, surplus spending, and affordability in the governor's race. The savings: Georgia's state gas tax is about 33 cents per gallon for gasoline and 37 cents for diesel. According to AAA figures cited by The Center Square's Kim Jarrett, regular unleaded averaged $3.85 per gallon, down from $4.18 the previous week but up from $2.89 a year ago. Diesel averaged $5.80, down from $6.23 last week and $3.51 a year ago. For a driver filling a 19-gallon tank, the suspension works out to roughly $6.50 per fill-up. A repeat move: Kemp suspended the tax this spring and also did so in 2022, 2023, and 2024, when prices were high. Jarrett says the spring suspension saved Georgians an estimated $400 million collectively. The federal gas tax still applies. How the state covers it: Kemp's office points to a state surplus of about $14.6 billion entering fiscal year 2026. Jarrett notes gas tax collections have been declining anyway, in Georgia and elsewhere, as electric vehicles and remote work reduce driving. Because Georgia and Tennessee traditionally use gas taxes to fund transportation, lawmakers in both states face questions about road paving and major projects as revenue shrinks. Jarrett says North Carolina may return to session to take up the issue. Economic impact unclear: Jarrett says it's hard to measure whether the savings are reaching the broader economy, since food and other costs are also rising, partly because fuel costs raise the price of moving goods to stores. Election angle: The suspension comes less than a month before the Nov. 3 election, and not everyone is on board, with some viewing the move as political. Democrat Keisha Lance Bottoms and Republican Rick Jackson debate tonight, and both have focused on affordability, with ideas ranging from using data center revenue to offset taxes to possibly eliminating the grocery tax. Do you support gas tax holidays, or should that money keep funding roads? Leave your thoughts in the comments. #Georgia #GasTax #BrianKemp #CenterSquare #TheStates