Georgia Gas Prices Set to Spike as Tax Suspension Expires

Georgia drivers face an immediate increase at the pump as the state’s temporary gas tax suspension expires at 11:59 p.m. on Tuesday, June 2, adding approximately $0.33 per gallon for regular gasoline and $0.373 per gallon for diesel. Governor Brian Kemp has declined to extend the relief, citing relatively steady oil prices and the need to maintain fiscal flexibility for unexpected future needs, according to USA Today.

Context

The suspension, originally enacted in March 2026 as gas prices climbed amid the ongoing war in Iran, was extended once by Kemp in May to carry through Memorial Day weekend. This marks the fourth time Kemp has suspended the gas tax, following similar actions in 2022 (war in Ukraine), 2023 (high inflation), and 2024 (Hurricane Helene), as CBS News Atlanta reported.

As of June 2, the average gas price in Georgia stood at $3.80 per gallon with the suspension in place, compared to a national average of $4.29. Georgia prices are expected to rise above $4 per gallon once the tax resumes, according to AAA data cited by FOX 5 Atlanta. Year-over-year, Georgia gas prices remain approximately $1.00 per gallon higher than the same period in 2025.

Key Developments

A spokesperson for Kemp’s office confirmed the decision in a statement, saying: “After renewing the suspension of the state gas tax to help hardworking Georgians get through the Memorial Day weekend with further relief, and with oil prices now holding relatively steady, the gas tax suspension will expire at 11:59 p.m. tomorrow while the state also keeps a financial eye toward any unexpected needs in the future.”

Kemp himself addressed the decision during a campaign event, telling 11Alive: “We wanted to push the gas tax out through Memorial Day because a lot of people were traveling, but we cannot do that forever. We got a special session coming up in mid-June, so we’ll continue talking to the legislature about that.”

The decision comes at a politically sensitive time. Kemp, who is term-limited and cannot run again, signed an income tax cut bill (HB 463) in May that has created a $1.3 billion revenue shortfall for the state’s FY2027 budget, as Rough Draft Atlanta reported. Kemp has already trimmed $300 million from the budget to partially offset the gap.

The tax suspension costs the state roughly $200 million per month in transportation funding that would otherwise support road and infrastructure projects. Georgia’s gas taxes are normally earmarked for roads and bridges; during suspensions, the state uses accumulated surplus funds to offset lost revenue.

Impact on Drivers and Small Businesses

For the average driver, the suspension saved approximately $14 per month. But for those who rely on their vehicles for their livelihood, the impact is far more significant. Food delivery driver Lady T told FOX 5 Atlanta that she spends $200 to $300 per week on gas. Small business owner Tika Carter, who runs a food truck, told WTVM/Atlanta News First that filling up her truck now costs $78, up from $53 before prices surged.

Commuter Rai McQueen told WTVM that she will have to reduce her travel: “In the weeks to come, I’m going to have to cut back on coming so much because the money has to be allocated in different ways.”

Political Implications

The gas tax expiration has become a flashpoint in the Georgia gubernatorial race. Democratic nominee Keisha Lance Bottoms, the former Atlanta mayor, has called for extending the suspension, stating: “Georgians can’t afford a hike in fuel costs this summer. Georgia leaders should continue to extend the gas tax suspension to provide working families with relief from these spiking costs.”

Bottoms faces either Lt. Gov. Burt Jones or healthcare executive Rick Jackson in the November general election, following the Republican primary runoff. If elected, Bottoms would make history as Georgia’s first woman governor and the first Black woman elected governor in U.S. history.

What’s Next

A special legislative session is scheduled for mid-June, where the gas tax and broader budget issues may be discussed. However, with a $1.3 billion budget shortfall already looming, any renewed relief would require difficult trade-offs. Meanwhile, the war in Iran continues to drive crude oil prices upward, meaning Georgia drivers face pressure from both the resumption of the state tax and global market forces beyond state control.

For now, AAA advises drivers to compare prices between stations, take advantage of fuel rewards programs, and avoid aggressive driving to maximize fuel economy as prices rise.