It may seem like only pennies at the pump, but Gov. Sonny Perdue's decision Monday to stomp the brakes on a gas tax hike could collectively save motorists $70 million to $80 million over the next year.

Perdue's decision on an increase due to take effect July 1 will save most motorists 2.9 cents per gallon. The Department of Revenue recalculates the state gas tax every six months.

The tax rate is based on the price per gallon, so as fuel costs rise, so does the gas tax.

Metro Atlantans on Monday were paying an average of $3.97 a gallon, according to fuel-tracking Web site atlantagasprices.com.

"I don't think we can justify raising taxes on gasoline in a time of economic stress for many families," Perdue said during a Capitol news conference. "I hope we can send a clear signal to Georgia's families that we understand the strain on their budgets brought on by high gas prices.

"We are doing all we can from a state's perspective to address that."

If the governor hadn't acted, the state tax on a gallon of gas would have jumped to 21.4 cents, including an excise tax. The combined tax is now 18.5 cents.

House Democrats applauded the Republican governor's move. They have been calling on Perdue to take some action to help with gas prices for several weeks.

"We're glad the governor has agreed with us and decided to suspend the gas tax increase, which Democrats called for in the middle of May," Rep. Rob Teilhet (D-Smyrna) said in a release.

The savings for Georgia drivers will redirect money that would have been spent for road construction and maintenance next fiscal year.

The governor's office estimated $70 million to $80 million in savings for drivers based on how much gas they are currently using.

Already, gas consumption has dropped as Georgians cut back at the pump.

Through the first 10 months of the fiscal year, which started July 1, drivers had bought 132 million fewer gallons of fuel than in the same period the year before, a decline of 2.4 percent, according to the state Department of Revenue. Figures for May should be coming out in the next few weeks.

Perdue's suspension also freezes state taxes on other categories of motor fuel, including diesel, aviation gasoline, liquid propane gas and "special fuels" like compressed natural gas.

For instance, state taxes on diesel used in vehicles, including the excise tax, were set to rise 4.2 cents a gallon to 24 cents on July 1.

Georgians also pay 18.4 cents per gallon of gas in federal taxes and a local tax that varies from county to county. Those taxes won't be affected by the governor's decision.

Perdue last month suspended all state taxes on fuel for off-road vehicles used by farmers and timber workers.

The governor said the state can't afford to give the same tax break to Georgia drivers. The state is expected to collect about $1 billion in fuel taxes during fiscal 2009.

Perdue's action Monday will freeze taxes until the Georgia General Assembly meets again in January. He will then re-evaluate and may continue the freeze if prices haven't fallen, officials said.

Perdue suspended gas taxes for all Georgians briefly in 2005 after Hurricane Katrina brought a run-up in prices at the pump.

 DALE E. DODSON / Staff 
GAS AND TAXES
Taxes on a gallon of gas in Atlanta add up to 50.8 cents. The state gas tax portion now will remain at 11 cents at least until January. 

Pie chart illustrates:
Federal taxes: 18.4 cents 
City/county tax: 13.9 cents 
State gas tax: 11 cents 
State excise tax: 7.5 cents 
Source: Georgia Department of Revenue