The Biden administration recognizes that gas pump prices are off the charts and wants to help.
President Biden announced Monday that he’s considering a gas tax federal holiday, similar to what has been done in Connecticut, Georgia and Maryland. It could save US consumers 18.4 cents a gallon.
Biden, at his vacation home in Delaware, told reporters, “I hope to have a decision based on the data. I’m looking for by the end of the week.”
Due partly to the war in Ukraine, and increased demand post COVID-19 and a summer surge in travel, gas prices across the nation have surged to over $5.00 a gallon in some states.
Biden said his staff is meeting with oil company executives this week to talk about the rising prices. The administration feels that the oil companies are taking advantage of consumers and making huge profits. Demand is high but oil supplies are not increasing to meet the demand. Oil refiners say they are limited in their ability to produce more gas and diesel fuel, and that they are operating at near full capacity.
Treasury Secretary Janet Yellen was interviewed on Sunday on the program “This Week” on ABC. She said the idea of a federal gas tax holiday is “certainly worth considering.”
Democratic Senator Mark Kelly of Arizona and other Democratic senators introduced legislation in February to pause the tax, which is 18.4 cents a gallon, until 2023, but the legislation hasn’t gone anywhere, due to opposition by Republicans.
Energy Secretary Jennifer Granholm said on Sunday that the idea is under consideration by the administration, but that the gas tax funds the highways, pointing out that there are pros and cons.
Connecticut suspended its federal gas tax until June 30. Some politicians say that using the Connecticut model shows that pausing the tax isn’t very effective because benefits don’t necessary reach consumers. However, a study by The Penn Wharton Budget Model (PWBM) estimated that consumers in the states with gas tax holidays did save money. According to their website, the PWBM is a “nonpartisan, research-based initiative that provides accurate, accessible and transparent economic analysis of public policy’s fiscal impact.”
The Biden administration’s effort to give relief to the public has already included releasing oil from the US strategic reserve and putting pressure on oil refiners to increase capacity. They are also considering rebates.
As gas prices continue to go up, Americans need relief, and will show their dissatisfaction at the polls in the mid-term elections coming up soon.
