Kentucky Cuts Fuel Taxes 10 Cents Per Gallon, Saves Drivers Millions

Key Details Governor Andy Beshear enacted Executive Order 2026-235 to slash diesel and gasoline taxes by 10 cents per gallon starting May 11. The move drops diesel taxes from 22 cents to 12 cents per gallon, while gasoline and liquefied petroleum taxes fall to 15 cents per gallon. Beshear declared a state of emergency linked to geopolitical factors driving fuel prices higher, with diesel averaging $5.371 and gas at $4.318 as of May 7. What Drivers Save The tax reduction is projected to save Kentucky residents $26.8 million combined over one month. The governor also froze an automatic 2-cent per gallon tax increase scheduled for July 1. Additionally, Beshear activated price-gouging laws to ensure retailers pass the full 10-cent savings to consumers rather than absorbing the benefit. Industry Response The Kentucky Trucking Association's Rick Taylor praised the effort, noting the hardship high fuel prices create for trucking companies and families. Taylor emphasized the industry's ongoing support for adequate road funding while acknowledging the immediate relief needed. Local governments cautioned the temporary tax reduction will decrease Road Fund revenue and affect Municipal Road Aid distributions during the order's duration.