
Beshear extends gas tax relief to 33 communities; Lexington excluded
FRANKFORT, Ky. — Governor Andy Beshear extended his emergency gas tax reduction to 33 Kentucky cities and counties on June 9, but Lexington notably remained excluded from the relief as local leaders declined to request the extension.
The extended order, which runs through June 30, reduces the state gas tax by 10 cents per gallon in communities where local officials requested continuation. Residents in areas where county judge/executives and city mayors chose not to seek an extension will see gas and diesel prices rise by 10 cents per gallon starting June 11.
The extension comes after Beshear declared a state of emergency in early May citing elevated fuel prices caused by the ongoing war in Iran. The temporary reduction in the motor fuels tax was designed to save Kentuckians approximately $27 million monthly. Under Kentucky law, the order required local officials to submit written requests to extend the emergency declaration past its initial 30-day period ending June 10.
Among the 33 communities approved for extension are Louisville-Jefferson County Metro Government, along with cities including Owensboro, Ashland, Covington and Winchester, and Carter, Graves, Magoffin, Morgan and Wolfe counties.
Beshear acknowledged that some local officials' decisions against requesting extensions may reflect pressure from Republican state legislators. During a June 2 transportation committee hearing, lawmakers warned that the gas tax cuts would reduce road funding by approximately $25 million monthly, potentially hampering infrastructure projects.
"Government is there to help our people, and the state can and will make up any potential financial hit," Beshear said. "Right now, our priority should be on Kentucky families."
The governor's May relief package included an emergency regulation freezing the gas tax at 26.4 cents per gallon to prevent a scheduled 2-cent increase set for July 1. Beshear also activated Kentucky's price-gouging law and sent letters to Congress urging suspension of the federal gas tax through year-end. A separate executive order froze motor vehicle assessment rates to prevent tax increases in 2027.
Last month, Louisville residents saw additional relief when the federal government approved Kentucky's request to remove the Louisville area from the Reformulated Gasoline Program. That change, effective May 27, is projected to save drivers in Jefferson, Bullitt and Oldham counties an additional 10 to 25 cents per gallon after three decades of higher fuel costs tied to the requirement.