Earlier this week, President Joe Biden called on Congress to suspend the federal diesel and gasoline taxes for three months to alleviate financial pressures.
According to a report, the president also urged states to eliminate their gas taxes or provide similar relief.
“It doesn’t reduce all the pain, but it will be a big help,” Biden said.
“I’m doing my part. I want Congress, states, and industry to do their part as well.”
The 18.4 cents-per-gallon federal gas tax and the 24.4 cents-per-gallon federal tax on diesel fuel are at issue. If the gas savings are passed along to customers, they will save approximately 3.6% at the pump when prices average about $5 a gallon nationwide.
Democratic House Speaker Nancy Pelosi offered a noncommittal response to Biden’s plan, saying she would look to see if there was support for it in Congress.
“We will see where the consensus lies on a path forward for the president’s proposal in the House and the Senate,” Pelosi said.
In his speech, Biden linked the soaring energy costs to Russia’s invasion of Ukraine.
Mark Zandi, a chief economist at Moody’s Analytics, estimated that the bulk of the 8.6% of inflation in the last year in the U.S. comes from higher commodity prices caused by Russia’s invasion and continued disruptions from the coronavirus.
In the immediate near term, it is critical to stem the increase in oil prices,” Zandi said last week, suggesting that Saudi Arabia, the United Arab Emirates, and a nuclear deal with Iran could help to boost supplies and lower prices. Republican lawmakers have tried to shift more blame to Biden, saying he created a hostile environment for domestic oil producers, causing their output to stay below pre-pandemic levels.
Administration officials stated that the $10 billion from the gas tax holiday will be covered and that the Highway Trust Fund will be kept whole even though gas taxes make up a significant revenue to fund.
Biden has also urged energy companies to take on lower profit margins to boost the production of oil and refining capacity for gasoline.
This story originally appeared on AP News.
Fascinating! President Biden’s gas and diesel tax suspension aims to ease the financial strain on consumers and the economy. It shows a strong commitment to finding solutions amid the Ukraine situation. 🤔 This could be a remarkable move.
The gas and diesel tax suspension is a commendable step in addressing economic challenges. How do you think this move will impact consumers and the economy?
Did you see Biden’s move on suspending gas taxes? It really shows he’s all about helping us out with those rising prices. Connecting those costs to world events is a smart move to keep our finances stable. What do you think about this approach to support American households during tough times?
I’m intrigued by Biden’s plan to suspend fuel taxes temporarily. It could really help people out. Let’s see how it unfolds and what it means for us and the energy industry.