ATLANTA — Gas prices across the United States have reached their highest levels since the start of the war in Ukraine, with the national average hitting $4 per gallon.
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However, prices in Georgia are more than 38 cents lower on average. On March 20th, Gov. Brian Kemp signed legislation to suspend the gas tax for 60 days.
In 2025, the gas tax ranged from 33 to 37 cents per gallon, depending on the type of fuel purchased. However, since then, Georgia prices have dropped just 16 cents on average.
“Although the tax is gone, the oil prices have continued to increase,” Emory Professor Saloni Firasta Vastani said.
The professor said the rising cost of oil has put upward pressure on prices nationwide. Combine that with other factors, like a change in fuel types to more expensive summer fuel, and you don’t see an immediate, huge drop in the cost of a gallon of gas.
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These savings become clearer when Georgia’s prices are compared to the national average.
When Georgia suspended the gas tax on March 20, the state average was $3.79 per gallon, while the national average was at $3.91.
Since then, the two averages have gone in opposite directions. According to AAA, Georgia Gas prices are $3.62, while the national average is 4.02.
Yet, this relief for consumers comes at a significant cost to the state.
“So those are the sort of trade-off decisions that you have to make,” Firasta Vastani said.
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The two-month suspension will cost the state roughly $360-$400 million in revenue earmarked for transportation projects. However, the state’s surplus should cover the cost and prevent any impact on projects.
“We should still be on track because of the surplus,” Firasta Vastani said.
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