Georgia has become the first state in the United States to suspend its fuel tax following a surge in gas prices tied to the war in the Middle East. Governor Brian Kemp signed a law enacting a 60-day suspension of the state’s 33-cent-per-gallon gasoline tax and 37-cent-per-gallon diesel tax, with motorists expected to see savings as the reductions reach gas stations. Officials estimate the move will cost the state between $360 million and $400 million, or about $5 to $6 per tank for a typical vehicle.

The tax revenue, normally designated for road and bridge projects, will be replaced with funds from the state’s surplus reserves. The fuel tax suspension is part of a broader relief package that includes $250 to $500 income tax rebates for eligible households, totaling about $1.2 billion. The measures come during an election year in the politically competitive state.

Unlike in 2022, when several states enacted similar gas tax holidays, most states are not following Georgia’s lead this time. Many face tighter budgets and are reluctant to forgo transportation funding. Governors in states such as Florida and Maryland have expressed opposition or skepticism, arguing that suspending fuel taxes would create budget shortfalls without addressing underlying energy market issues.