Oil prices are still high as renewed talks between President Donald Trump and Iran face challenges. The president has threatened Iran to “get moving” and said the “clock is ticking” following a drone strike on a nuclear power plant in the United Arab Emirates.
The war in Iran is now in its fourth month, and while the prices of Brent crude oil dropped about 1% Monday following spikes over the weekend, there is no clear end in sight to the high prices at the gas pump.
Georgia’s Gas Tax Suspension Extended
On May 15, Georgia Governor Brian Kemp announced an extension on the state gas tax suspension which began in March. The initial suspension was set to end at 11:59 p.m. on May 19.
“As Georgia families prepare for the Memorial Day travel weekend, they should not feel blindsided by prices at the gas pump,” Gov. Kemp said in a statement. “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 gas tax will now be suspended for another two weeks, ending instead on June 3.
What Is the Price of Gas in Georgia?
As many as 39.1 million Americans will be traveling by car over the Memorial Day holiday weekend, an increase from last year, according to AAA.
The largest area of congestion predicted in Georgia is from Atlanta to Augusta along I-20E, particularly Thursday evening. Traffic could be up as much as 43%.
As of Monday morning, the average gas price in Georgia is $3.99, though it’s higher in some counties like Fulton ($4.16), Thomas ($4.09) and Oglethorpe ($4.13), according to AAA.
The national average gas price, as of Monday, is $4.51 — considerably higher than Georgia’s average. The highest prices remain on the western half of the country: California is averaging $6.15 per gallon, while both Oregon and Washington are well over $5. Illinois has also passed the $5 average threshold, followed closely by Michigan at $4.83.
How Much Do Georgians Save With No Gas Tax?
According to the governor’s office, the current motor fuel excise tax in Georgia is 33.3 cents per gallon for gasoline and 37.3 cents per gallon for diesel.
So, if a resident was filling up their 10-gallon tank with the gas tax, it would run about $43.20. Without the gas tax, that same tank would only cost $39.90 with current average gas prices in the state.
It may not seem like a huge difference for a single tank, but over the course of a month of driving and multiple refills, the suspension of the gas tax can save residents $12 or $15 for regular gasoline vehicles.
The tax is calculated by the “average miles per gallon of Georgia-registered vehicles, as adjusted for annual changes in fuel efficiency and the Consumer Price Index,” according to the Department of Revenue. It applies to gasoline, clear diesel, aviation gasoline, liquid propane gas, gasohol, ethanol, liquified natural gas and compressed natural gas — but not motor fuels sold for “off-highway use,” such as jet fuel.
There are roughly 5,800 small convenience stores in Georgia, and fuel sales account for 65% of their total sales. When Georgians choose not to drive because of high prices, it ripples through to those small businesses as well.
The Georgia Attorney General’s Consumer Protection Division notes that while the state can take some action to lower prices, any major change will come at the federal level, and urges Georgians to conserve gas when appropriate.
“The United States government (specifically the Federal Trade Commission, the Department of Justice and the Department of Energy) has increased its efforts to monitor the petroleum market for potentially illegal or anticompetitive behavior such as price-fixing,” according to the Attorney General’s Office.
Irene Wright covers the statehouse in Georgia as the Atlanta Connect reporter with USA Today’s Deep South Connect team.
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