Oil prices are still high as renewed talks between President Donald Trump and Iran face challenges. The President has threatened Iran to “move on” after a drone attack on a nuclear power plant in the United Arab Emirates, saying “time is running out”.
The war in Iran is now in its fourth month, and while Brent crude oil prices fell about 1% on Monday after spikes over the weekend, there is no clear end in sight to the high prices at the gas pump.
Georgia’s gas tax suspension extended
On May 15, Georgia Governor Brian Kemp announced an extension of the state gas tax suspension that began in March. The initial suspension was scheduled to end on May 19 at 11:59 pm.
“As Georgia families prepare for Memorial Day travel weekend, they should not be confused by prices at the gas pump,” Gov. Kemp said in a statement. “Along with my colleagues in the Legislature, we are committed to providing relief to hardworking Georgians wherever possible, and this action is another fulfillment of that promise.”
The gas tax will now be suspended for the next two weeks, ending on June 3.
What is the price of gas in Georgia?
According to AAA, at least 39.1 million Americans will travel by car over the Memorial Day holiday weekend, an increase from last year.
The largest areas of congestion in Georgia are predicted to be along I-20E from Atlanta to Augusta, especially Thursday evening. Traffic may increase by 43%.
As of Monday morning, the average gas price in Georgia is $3.99, according to AAA, although it’s higher in some counties like Fulton ($4.16), Thomas ($4.09) and Oglethorpe ($4.13).
As of Monday, the national average gas price is $4.51 – significantly higher than the Georgia average. The highest prices remain in the western part of the country: The average price in California is $6.15 per gallon, while prices in both Oregon and Washington exceed $5. Illinois has also crossed the $5 average, followed by Michigan at $4.83.
How much do Georgians save without gas tax?
According to the Governor’s Office, the current motor fuel excise tax in Georgia is 33.3 cents per gallon for gasoline and 37.3 cents per gallon for diesel.
So, if a resident were filling their 10-gallon tank with the gas tax, it would be approximately $43.20. Without the gas tax, the same tank would cost only $39.90 with current average gas prices in the state.
This may not seem like a huge difference for one tank, but over the course of a month of driving and multiple refills, the suspension of the gas tax could save residents $12 or $15 for regular gasoline vehicles.
According to the Department of Revenue, the tax is calculated based on “Georgia-registered vehicles’ average miles per gallon, adjusted for fuel efficiency and annual changes in the Consumer Price Index.” This applies to gasoline, clarified diesel, aviation gasoline, liquid propane gas, gasohol, ethanol, liquefied natural gas, and compressed natural gas – but not to motor fuels sold for “off-highway use” such as jet fuel.
There are approximately 5,800 small convenience stores in Georgia, and fuel sales account for 65% of their total sales. When Georgians choose not to drive because of high prices, it also impacts those small businesses.
The Georgia Attorney General’s Consumer Protection Division says that although the state can take some action to lower prices, any major changes will have to come at the federal level, and urges Georgians to conserve gas when appropriate.
According to the Attorney General’s Office, “The United States Government (particularly the Federal Trade Commission, the Department of Justice, and the Department of Energy) has increased its efforts to monitor the petroleum market for potentially illegal or anti-competitive behavior, such as price-fixing.”
Irene Wright covers the Statehouse in Georgia as an Atlanta Connect reporter with USA TODAY’s Deep South Connect team.