Georgia Suspends Gas Tax for 2 Months as Iran Conflict Drives Up Fuel Costs

Governor Brian Kemp of Georgia announced Friday that his state will temporarily eliminate its gasoline tax as fuel costs continue climbing during the ongoing U.S.-Israeli conflict with Iran, now in its third week.

Starting immediately, Georgia motorists will see relief from the state’s 33.3 cents per gallon tax on gasoline and 37.3 cents per gallon tax on diesel fuel for the next two months. This marks the first instance of a U.S. state providing such relief since the conflict began on February 28.

Oil supplies from the Middle East have been severely disrupted by the war, prompting President Donald Trump to explore military intervention to protect oil tanker routes through the Strait of Hormuz, a critical shipping channel near Iran.

National gasoline prices reached $3.912 per gallon on Friday, representing the highest levels seen since October 2022 and a 31% increase from when the U.S.-Israeli war against Iran commenced.

A recent Reuters/Ipsos survey revealed that 55% of Americans report their household budgets have been impacted “somewhat” or more by rising fuel costs. Of those experiencing financial strain, 21% indicated the price increases have affected them “a great deal.”

When asked about escalating pump prices earlier this month, Trump dismissed concerns, telling Reuters he anticipated costs would drop “very rapidly” following the war’s conclusion.

According to Fox News, citing White House sources, the Trump administration is developing strategies to ease the financial burden Americans face when filling up their vehicles.