Tuesday, December 30, 2014

Lower gas prices mean less money for road projects

Gas prices have been plummeting over the past few weeks. Drivers are thrilled.

Kentucky's gasoline motor fuel tax rate is based on the wholesale price of gas. That money is used for things like road projects.

Those taxes lag behind by a quarter. The January 1 number was calculated in October. The tax rate for the quarter starting in April will be based on gas prices in January, which will likely go even lower.

According to GasBuddy.com, the average price for a gallon of gas in Kentucky is $2.08. The national average is $2.26.