Are you seeing lower gas prices? Here are Kentucky’s last-second gas tax changes

Gov. Andy Beshear said some local leaders asked for a 10-cent gas tax cut at the last second—and others backed away from their previously announced requests.

Olivia Krauth

June 11, 2026

Gov. Andy Beshear speaks about the decision to reduce the state's gas tax during a press conference. | Screenshot.

Gas prices are set to go up across much of Kentucky Thursday, but just where they’ll go up has shifted, Gov. Andy Beshear shared.

Beshear said earlier this week 33 city and county leaders had requested a 10-cent gas tax cut stay in effect until the end of the month, with the rest of the state forgoing the extension and seeing higher prices at the pump starting Thursday.

But on Thursday, Beshear said during a press conference some of those leaders had since walked back their request—and others had asked to keep the lower gas prices.

In total, 35 areas will get to keep the 10-cent discount. The rest of the state will see their gas prices go up, starting Thursday.

Thursday’s announcement is the latest in a political back-and-forth between Beshear, a Democrat, and Kentucky’s Republican legislature over the gas tax and funding the state’s roads.

Kentucky typically charges 26.4 cents per gallon in the state’s gas tax, with that money going to the state’s road fund—a pot of money meant to repair roadways across the state. Beshear’s executive order cut 10 cents per gallon, keeping 16.4 cents in tax.

Beshear has routinely pointed to skyrocketing gas prices due to the ongoing war in Iran, saying he intends for the temporary lowering of prices to help make life a bit more affordable. Under state law, Beshear can only sign executive orders for 30 days. City and county leaders need to request an extension past that.

As they kicked off the interim legislative session last week, lawmakers heard from transportation leaders that such a cut would cost the road fund nearly $27 million for each month it is in effect. Their math signaled that the gas tax cut would only save the average driver about $5 a month, while deferred road maintenance could cause much higher costs in car and tire damage.

Some Republicans criticized Beshear for the move, with Sen. Jimmy Higdon (R-Marion) suggesting that city and county officials ask Beshear to extend the gas tax reduction should have their road fund amounts slashed.

“These legislators will now threaten anyone who disagrees with them, and that is the wrong way to use your power,” Beshear said Thursday.

The state can use its rainy day fund to cover any ultimate gaps in the road fund, Beshear said. (Republicans in the legislature, who control the state budget, have historically declined to use the rainy day fund, and have more recently signaled they’re not interested in using it to cover the road fund due to this.)

Beshear continued: “Who do you put first: Your family’s budgets or your governments?”

Below is the full list of areas that got the extended gas tax reduction. New additions are bolded, and areas that initially asked for the extension and withdrew their request have a line through them.

Counties