Gov. Beshear Takes Steps To Lower Gas Prices, Address Affordability for Kentucky Families

Steps come as inflation hits 3-year high and gas soars to over $4 per gallon due to decisions at federal level

FRANKFORT, Ky. (May 5, 2026) - As gas prices continue to rise due to the ongoing war in Iran, Gov. Andy Beshear took steps today to provide relief to Kentucky families by freezing the gas tax, activating the state's price gouging laws and sending two letters to Congress requesting they suspend the federal gas tax. The Governor also signed an executive order declaring a state of emergency to reduce the gas tax by 10 cents, which he urged the Attorney General to sign, and proactively signed an executive order to freeze the motor vehicle assessment rate on Jan. 1, 2027.

"The American people are paying the costs of the war, and families are struggling at the gas pump, grocery and more - including right here in Kentucky," said Gov. Beshear. "I recognize the pain our families are feeling and I'm taking steps to help because it's the right thing to do."

First, the Governor signed an emergency regulation to freeze the gas tax at 26.4 cents per gallon ahead of an expected increase to 27 cents per gallon on July 1. The action to freeze the current rate is projected to save Kentuckians about $1.7 million, combined, each month.

Recognizing more steps are needed to help with rising prices, Gov. Beshear also signed an executive order declaring a state of emergency related to gas prices. The order will reduce the gas tax by 10 cents, which should result in a 10 cent per gallon price decrease for Kentuckians. The Governor requested the order take effect as soon as possible for both regular and diesel, with the potential to save Kentuckians $26.8 million combined over a one-month period.

"This would be huge for our families, but it requires one step for it to become a reality and that's sign-off from Kentucky's Attorney General, based on a Supreme Court case from years ago," the Governor said. "My hope is that the AG also believes gas prices are too high and will sign quickly so we can deliver results for Kentuckians."

To enforce the reduction and ensure providers don't keep the 10 cents, Gov. Beshear also activated the state's price-gouging statute.

In addition to these steps, this morning, the Governor sent two letters urging leadership in Congress and leaders in Kentucky's congressional delegation to suspend the federal gas tax until the end of the year.

"These leaders have a real chance to help our people when they desperately need relief, and I pray they can put politics aside and take a long, overdue step to help American families," said Gov. Beshear.

In a proactive step, the Governor also signed an executive order today to freeze the 2026 motor vehicle assessment rate ahead of an expected increase on Jan. 1, 2027. This step will ensure the rate remains the same so Kentucky vehicle owners won't pay more for vehicle property tax.

Today's actions come just weeks ahead of an expected price decrease in Jefferson, Bullitt and Oldham counties after the Governor's request to the U.S. Environmental Protection Agency (EPA) for the Louisville area to be removed from the federal Reformulated Gasoline Program (RFG) received approval in February. For 30 years, Kentuckians living in these counties were paying 10 to 25 cents more per gallon. The change will take place on May 27, 2026.

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