Georgia Governor Extends Gas Tax Suspension Through Early June

ATLANTA — Georgia Governor Brian Kemp signed an executive order last week extending the suspension of the state’s motor fuel excise tax for two additional weeks, providing price relief for consumers and businesses ahead of the busy Memorial Day travel weekend. The new suspension took effect at 12:01 a.m. on May 20 and is scheduled to run through 11:59 p.m. on June 3. The executive order ensures there is no gap in the tax relief, as it immediately follows a previous suspension enacted through House Bill 1199, which expired on May 19. This action temporarily removes the state excise tax of 33.3 cents per gallon on gasoline and 37.3 cents per gallon on diesel. The suspension applies to a wide range of fuels, including gasoline, clear diesel, aviation gasoline, liquid propane gas, and natural gas products, according to the Georgia Department of Revenue. “As Georgia families prepare for the Memorial Day travel weekend, they should not feel blindsided by prices at the gas pump,” Kemp said in a press release. “Along with our partners in the legislature, we’ve remained committed to giving hardworking Georgians relief wherever able, and this action is another fulfillment of that promise.” The timing of the extension coincides with a projected surge in holiday travel. According to AAA, nearly 40 million Americans are expected to travel by car for the Memorial Day weekend, a figure that surpasses last year’s record. The relief is intended to mitigate the impact of high fuel costs on family budgets and business operating expenses. Even with the prior tax suspension in place, the average price for a gallon of regular gasoline in Georgia was approximately $4.02, according to reports from AAA cited by local news outlets. While this is about 50 cents below the national average, it remains significantly higher than the average price of $2.93 per gallon recorded at the same time in 2025. Sources attribute the elevated global energy prices to ongoing international conflicts, including the war in Iran and disruptions in the Strait of Hormuz. This is not the first time the governor has used this executive power to control fuel costs. Kemp previously suspended the gas tax on multiple occasions, including in 2022 in response to price spikes related to the war in Ukraine, in 2023 amid high inflation, and briefly in 2024 following Hurricane Helene. Each suspension is a temporary measure designed to address acute periods of economic pressure on consumers and industries reliant on transportation. Revenue from the state motor fuel tax is specifically earmarked for funding the maintenance and construction of Georgia's roads and bridges. To compensate for the estimated loss in revenue during the suspension period, the state will utilize funds from its substantial budget surplus. This approach allows the state to provide immediate tax relief without cutting into planned transportation projects. For Georgia businesses, particularly those in the logistics, construction, delivery, and service industries that operate vehicle fleets, the suspension offers a direct and meaningful reduction in operating costs. The 37.3-cent savings on each gallon of diesel can accumulate into significant financial relief for companies that consume large volumes of fuel. The move also provides an indirect benefit to retailers and tourism-related businesses, as lower fuel costs may encourage more consumer travel and discretionary spending during the holiday period. Operationally, the suspension is implemented at the distributor level. According to guidance from the Georgia Department of Revenue, fuel distributors are instructed not to remit the motor fuel excise tax to the state on fuel sold during the suspension period. This ensures the savings are passed down the supply chain to retailers and, ultimately, to the consumer at the pump. It is important for businesses to note that the suspension does not apply to any local sales or use taxes, which must still be collected and remitted as usual. While the tax holiday provides welcome, tangible relief for both consumers and commercial fleets, the recurring, short-term nature of these suspensions introduces a layer of complexity for business planning. In our experience, these temporary policy shifts can create unexpected bookkeeping and compliance challenges, particularly for fuel distributors and retailers who must adjust their pricing and tax remittance processes on short notice. Accurately forecasting cash flow and tax liabilities becomes more difficult when a significant cost component like the fuel tax can be switched on or off by executive order. Businesses must ensure their accounting systems are agile enough to handle these changes correctly to maintain compliance and pass savings to customers without inadvertently eroding their own profit margins. For companies navigating the complexities of state tax preparation and compliance, the team at C&S Finance Group LLC provides expert guidance. Visit us at csfinancegroup.com to learn how we can help. The current executive order is set to expire on June 3. The governor has the authority to issue further extensions. Future decisions on the tax suspension will likely be influenced by the trajectory of global energy prices, the condition of the state's budget surplus, and the overall economic climate as the summer travel season progresses.