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Kentucky gas tax to drop 1.4 cents on July 1

Jun 13, 2025 | 10:27 AM

Michael Crimmins/Glasgow News 1

By MICHAEL CRIMMINS
Glasgow News 1

In less than a month, people could see a slight decrease in gas prices.

Kentucky Governor Andy Beshear announced a 1.4-cent-per-gallon decrease of the state’s gas tax effective July 1. The commonwealth’s current gas tax is 26.4 cents per gallon, meaning the new tax will be decreased to a flat 25 cents.

“Far too many Kentucky and American families are struggling to pay the bills,” Beshear said during a press conference. “I know every penny counts and that these savings can really add up. Whether you’re driving to school, to work, headed to church, or headed out to a family trip, at least here in Kentucky you’re gas is going to cost a bit less starting July 1st.”

Kentucky House Speaker David Osborne and Senate President Robert Stivers, both Republicans, released a joint statement saying the decrease was not the result of executive action, but a result of an automatic adjustment defined in Kentucky Revised Statute 138.220, “a statute that ties Kentucky’s gas tax to the average wholesale fuel price.”

“[The] news release from Governor Andy Beshear regarding a July 1 gas tax reduction were a masterclass in political spin,” the joint statement reads. “The Governor is taking credit for a 1.4-cent-per-gallon decrease set to take effect next month—a claim so disconnected from reality it demands correction. This reduction is not the result of executive action but an automatic adjustment. It’s a formula, not a feat of Andy Beshear’s actions.”

Kentucky’s average gas price — which is $2.84 — is lower than the national average of $3.13, according to AAA. The average Barren County gas price is $2.82.

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