Economy

Where will Kentucky’s gas tax cut stay in effect and who will see higher prices?

Only 33 cities and counties will still see lower fuel prices after local leaders requested extensions to the gas tax cut.

Photo by Manu Gvzman/Pexels

Much of Kentucky will see their gas prices jump this week after their local leaders declined to extend a recent cut to the state’s gas tax. 

Last month, Democratic Gov. Andy Beshear temporarily dropped Kentucky’s gas tax by 10 cents to help Kentuckians better grapple with skyrocketing fuel prices. The executive action was only set to last a month, though, and local city and county leaders needed to request an extension to keep the lower prices.

Beshear said Tuesday only 33 of Kentucky’s cities and counties asked for that extension, with the rest of Kentucky expecting to see gas jump 10 cents starting Thursday. 

For those that got the extension, the lower price will be in effect until at least June 30. 

“Gas prices are too high due to the continued war in Iran, and Americans – including right here in Kentucky – are struggling. Every dollar counts, and my executive order lowered gas and diesel prices across the state to help our families save,” Beshear said in a press release. 

“Government is there to help our people, and the state can and will make up any potential financial hit,” he continued. “Right now, our priority should be on Kentucky families, and I applaud these local leaders for doing what’s right.”

Transportation leaders testified last week in Frankfort that for every month the 10-cent cut is in place, Kentucky has around $27 million less for fixing the state’s roads. Several Republican lawmakers criticized Beshear and the cut in the meeting, accusing him of political pandering.  

Beshear’s press release said he “acknowledged that some local officials’ decisions to not make a request may stem from pressure from certain state legislators in recent committee hearings.”

Louisville Mayor Craig Greenberg, a Democrat, said he requested the gas tax cut to be extended, in part due to a two-month-long closure of a stretch of I-65 forcing many Louisville drivers to make longer commutes. 

Gas prices in Kentucky have been trending down over the past week, in part because of the end of a separate gas tax impacting Louisville and some of its surrounding areas. As of Tuesday, an average gallon of regular unleaded gas in Kentucky is around $3.743—down by about 55 cents from this time last month. 

But prices are expected to trend up in the coming months, Greenberg said, pushing him to request the extension. 

“This extension provides relief when people need it most,” Greenberg said in a post on X. “Many Louisville families are making difficult choices every day as household budgets remain under pressure. Every dollar counts, so I will continue taking action to keep more money in the pockets of working families.”

Here’s the full list of cities and counties that opted in for the extended gas tax cut.

Counties

  • Carter
  • Graves
  • Jefferson (Louisville)
  • Magoffin
  • Morgan
  • Wolfe

Cities

  • Alexandria
  • Ashland
  • Campton
  • Carrsville
  • Clay City
  • Covington
  • Drakesboro
  • Earlington
  • Eminence
  • Falmouth
  • Gamaliel
  • Glencoe
  • Island
  • Jenkins
  • London
  • McHenry
  • Oak Grove
  • Owensboro
  • Owingsville
  • Paintsville
  • Park City
  • Sebree
  • Smithfield
  • Smiths Grove
  • West Point
  • Whitesville
  • Winchester