By Jasper Ward

May 6 (Reuters) - Kentucky Governor Andy Beshear has moved to reduce the state's gasoline tax by 10 cents as residents continue to grapple with rising prices at the pump as a result of the U.S.-Israeli conflict with Iran.

The Democratic governor also said he would postpone a 0.6 cent per gallon increase in the state's current 26.4 cent tax, which had been due to take effect July 1, and that together the moves will save state residents roughly $1.7 million a month.

"Oil prices hit a wartime and four-year high on April 30, 2026, continuing to spike gas prices," Beshear said in the emergency regulation on Tuesday. "This emergency administrative regulation will last until end of the war in Iran or when gas prices drop below $3.00 per gallon, whichever occurs later in time."

Kentucky residents pay $4.317 on average at the pump, according to the American Automobile Association. A month ago, during the early stages of the Iran conflict, they were paying $3.910 on regular gasoline.

The national average retail price of ​gasoline surpassed $4.50 a gallon on Tuesday for the first time since July 2022, data from GasBuddy ‌showed.

Beshear also called on the U.S. Congress to suspend the federal gas tax.

Oil prices CLc1 have been sharply volatile since the February 28 start of the war and the choking off of the Strait of Hormuz, a critical transit point that about a fifth of the world's daily oil supply traveled through prior to the conflict. Oil industry experts have warned that even if the U.S. and Iran agree to a peace deal, fuel prices will remain under pressure for some time as it will be many months before Middle East production and exports return to pre-war levels.