Georgia was the first state to suspend their state gasoline tax last week which has helped to lower prices a bit in the state. Some experts are predicting that other states may follow this lead and also eliminate their state taxes on gasoline for short periods of time.
The Georgia legislators last week suspended a state 7.5 cents-a-gallon gas tax as well as the 4% sales tax on gasoline until Oct. 1 of this year. The tax break in could cut the cost of gas by about 15 cents a gallon, but it will also cost the state about $75 million in lost revenue over the month period.
The average price of gas in the US remained over $3.00 a gallon for the second straight day according to AAA automotive club. The average price for a gallon of unleaded regular gasoline was $3.041 per gallon, down slightly from the $3.057 record set on Monday. Adjusted for inflation, it still isn't the all time record which was $3.113 set in March 1981, when gas was $1.417. Gas was under $2.00 a gallon at $1.849 a year ago.
The least expensive gas could be found in Louisiana and Mississippi at about $2.74 a gallon. While these two states were hit hard by hurricane Katrina, a combination of anti-price-gouging regulations and major oil companies freezing prices in those areas to assist recovery efforts have kept prices below the national average. Washington D.C. came in with the highest average price at $3.346 per gallon.
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Gas Tax Break
