Kentuckians continue feeling the pinch at the gas pump despite gas tax freeze

LOUISVILLE, Ky. (WDRB) — Gas prices took a small dip this week in Kentucky following Gov. Andy Beshear freezing the state's gas tax.

Saving by the cents comes with a different cost and ultimately could mean delaying some road and highway safety projects.

Last week, Beshear announced he was freezing the gas tax and preventing a future price hike by declaring a state of emergency. He also temporarily reduced the gas tax.

Freezing the gas tax is meant to prevent increases this summer. Without it, the gas tax would have risen to 27 cents in July. Right now, it sits at 26 cents.

Beshear said the move is expected to save Kentuckians an estimated $26.8 million per month. However, that savings puts the state in the hole somewhere else.

"Yes, it creates a $26 million hole in our road budget," he said.

The gas tax funds the state's road fund. With less taxes being collected, the temporary gas tax reduction directly impacts road and state highway projects. Beshear said helping people who are struggling to get by is more important right now. He added that the state has a $2 billion rainy day fund that could be used to repair roads, but state lawmakers would have to approve it.

Although the changes have taken effect, many people like retired Kentuckian Henry Sublett are still penny-pinching at the pump.

Sublett stopped to get gas at the Marathon on Broadway Thursday. He said he hasn't been filling up his tank.

"I put $10 in and I go home. That's it," Sublett said. "Right now, it's just bad all the way around."

Gas prices Thursday were all over the place. Within a less than one-mile radius on Broadway downtown, the highest price was $4.79 at Dino's gas station. Kroger had the lowest prices at $4.09.

Walid Adi, co-owner of the Marathon on Broadway, is meeting people in the middle on cost with $4.29.

Adi said he knows people are struggling because, when they come get gas at his store, they're buying less gallons while still paying more. To make a profit, he has to set his price based on the gas stations leading the market.

"Either Thornton's or Speedway, most of the time they go up and the rest go up or go down," he said.

Sublett thinks Adi's price is still pretty high, even with the temporary gas tax reduction in place.

"What you see over there, $4.29, it's gonna be like that," Sublett said.

At this point, Sublett said he has accepted that gas is simply high. With the ongoing war in Iran, he doesn't expect it to change much soon.

"The war has just got started, for real," he said.

During the Team Kentucky press conference, Gov. Beshear said gas has dropped by 10 cents in a week, because of the temporary gas tax reduction.

Sublett said Beshear's changes aren't helping much.

Sublett said what he would like to see is for things to go back to the way they were.