(WKYT) – Gas prices are at their highest since the summer of 2022. AAA says the average price for a gallon of gas is $4.18. That price could affect what drivers pay at the pump next year.
Kentucky’s Department of Revenue sets motor fuel tax rates every July 1st. The current rate is 25 cents a gallon. Legislators on the state’s Transportation Committee review that tax each year.
House Transportation Chair John Blanton said drivers could see an increase, possibly a one-cent increase, this July.
“I know everybody’s concerned about the high cap cost of gasoline right now currently, but that is actually determined over four quarters, beginning in each fiscal year, beginning July,” Blanton said. “So only this April quarter is going to be impacted by this high rate.”
If the tax increases by a penny, Blanton estimates the state could put an additional $30 million toward upgrading roads and bridges. Motor fuel taxes go directly to the state’s road fund. This past legislative session, Blanton said lawmakers assigned about $97 million from the general fund to city and county roads.
“There is a safeguard in place that the excise tax can never increase by more than ten percent in any one fiscal year,” Blanton said. “So it can’t exceed that amount.”