Kentucky freezes gas tax at 26 cents per gallon, avoiding $150 million cut to road fund

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FRANKFORT, Kentucky — Kentucky drivers will not get a tax break at the gas pump on April 1.

State lawmakers agreed to effectively halt a scheduled 5.1-cents-per-gallon decrease in the state gas tax because it would have meant a $150 million cut to the state's road fund on top of a $129 million cut from a similar decline in January.

Kentucky's gas tax is tied to the wholesale price of fuel. The current tax is 26.2 cents per gallon. It had been scheduled to fall to 22.1 cents per gallon on April 1. Instead, lawmakers agreed to drop it to 26 cents per gallon and freeze it so it could never fall below that.

State transportation officials warned the road fund would run out of money by 2016 if lawmakers did not freeze the tax.

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