Gov. Andy Beshear filed an emergency regulation Thursday to freeze the state gas tax and prevent a 2-cent increase per gallon that would have taken effect July 1.
“Kentuckians cannot afford to pay more, and I am committed to doing everything I can to help keep more dollars in people’s pockets,” Beshear said. “This law was never intended to hurt Kentuckians during tough times, but with rising prices and inflation, this increase would have a negative impact on our families and it is time to take action.”
Beshear also sent a letter to Attorney General Daniel Cameron Thursday asking whether he should declare a state of emergency in order to activate the price gouging statute and further protect Kentuckians.
The funds collected through the gas tax, Beshear said in a release, contribute to the road fund; to make up for the lost road fund revenues, Beshear will propose using funds from the upcoming general fund budget surplus.
“This action to provide relief to Kentuckians will have no material impact on the transportation budget and projects,” Kentucky Transportation Cabinet Secretary Jim Gray said. “All projects will move forward.”
In response to the emergency regulation, Speaker of the House David Osborne called on Beshear to demand President Joe Biden seek “real solutions.”
“At two cents a gallon this provides little relief to Kentuckians paying almost twice as much at the pump as they did last year,” Osborne said in a release sent Thursday. “While the skyrocketing cost is the obvious and inevitable result of disastrous foreign and domestic policies on the federal level, President Biden seems unwilling to provide meaningful solutions to the impact inflation is having on the cost of living for the average person and the Governor’s only response seems to be to ask him to print more money.”
Senate President Robert Stivers also released a statement in response to Beshear’s announcement.
“Because of the Biden Administration’s reckless policies, families across our commonwealth are struggling more and more,” Stivers said. “Each coming day brings a new crisis, from out-of-control inflation and record-high gas prices to a dangerously low baby formula supply.”
Stivers said that while he supported working with Beshear to find a solution to high gas prices, he questions the governor’s process for doing so.
“KRS 138.226 requires the Department of Revenue to administer the gas tax as prescribed by law; the governor cannot deviate from the tax amount determined by statute,” Stivers said in the statement. “It is not within the governor’s purview to pick and choose which regulations he would like to enforce. Not only is this action illegal, but it will only save residents 2-cents-per-gallon and with current prices in Kentucky reaching $5 per gallon, it will have little to no effect on what Kentuckians should expect to pay at the pump.”