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Gas prices starting to increase in Georgia
Gas prices are starting to increase in Georgia after Gov. Brian Kemp decided to end the gas tax suspension due to stability of oil prices and possible need of money in the future.
ATLANTA - Georgia drivers are feeling the impact at the pump after the state's temporary suspension of the motor fuel tax expired overnight, sending gas prices sharply higher across the state.
PREVIOUS STORY: Fill up now: Georgia gas tax break ends Tuesday
The suspension, which had been in place since March, ended at 11:59 p.m. Monday after Gov. Brian Kemp opted not to extend the tax break beyond Memorial Day weekend. The move restored roughly 30 cents per gallon to the price of gasoline.
By Tuesday morning, many drivers were already noticing the difference.
Gas stations that had been charging around $3.80 per gallon were posting prices above $4.19 Tuesday morning in Atlanta.
Note: Fulton, DeKalb and Cobb counties have among the highest averages in the state.
Why the suspension ended
What we know:
Kemp first suspended the state's fuel tax in March as gasoline prices climbed. He later extended the measure through Memorial Day weekend but allowed it to expire this week.
State officials cited relatively stable oil prices and the need to preserve revenue for future state needs. The fuel tax generates roughly $200 million per month for Georgia.
Unlike a similar suspension in 2022 that lasted for several months, state leaders chose not to continue the tax relief this time.
The highest recorded average price for a gallon of gas was $4.499 on June 15, 2022.
What it means for drivers
Dig deeper:
According to AAA, Georgia's average gas price reached about $3.79 per gallon Tuesday, a significant jump from recent weeks.
The increase could have a noticeable impact on household budgets.
Based on average driving patterns, a Georgia commuter who drives about 16,000 miles per year and gets 25 miles per gallon would spend roughly:
- $151 per month on gas when prices average $2.83 per gallon, which was the price one year ago.
- $219 per month if prices rise to $4.10 per gallon.
That amounts to an increase of about $68 per month.
For the average Georgia household, annual fuel spending that was previously estimated at $2,000 to $2,500 could climb to between $2,900 and $3,620 if prices remain around $4.10 per gallon. That translates to approximately $75 to $95 more per month spent on gasoline.
Drivers react
What they're saying:
Some motorists said the sudden increase was frustrating but not surprising.
"I think it's pretty crazy," one driver told FOX 5. "I've been out Cali before, so this is getting pretty hectic, but I'm living with it."
Another driver expressed concern about the rising costs.
"That's concerning. I just feel like things should get back to normal soon," the driver said.
For now, Georgia drivers will have to adjust to higher fuel costs as the state's gas tax returns and prices continue to climb.
Will prices go back down?
What they're saying:
Experts say several other factors could influence prices in the coming months. Ongoing tensions in the Middle East and concerns about global oil supplies are expected to keep gas prices elevated and volatile in the short term. Analysts note that any easing of conflicts affecting oil shipments could help lower crude oil prices, though pump prices typically fall much more slowly than they rise.
Longer term, federal energy forecasters expect gasoline prices to face downward pressure as global oil supplies stabilize and Americans drive more fuel-efficient vehicles or switch to electric vehicles. However, many energy analysts caution that gas prices may not return to the lower levels drivers enjoyed before the energy market disruptions that began in 2022.