To combat one of the main causes of inflation, Vice President Biden has called for a three-month suspension of the federal gas tax.
On Wednesday, President Obama called for a suspension of both federal and state gas taxes through September, which would necessitate new legislation from Congress, and new actions by the oil industry to quickly pass savings on to consumers and increase refining capacity.
One gallon of gas could drop in price by around $1 if all of these measures are taken together, according to Biden aides, but each one could face an uphill battle from lawmakers on Capitol Hill to top gas company executives.
As Vice President Joe Biden stated during his speech on Wednesday, “we can bring down the price of gas and bring a little bit of relief to families” by suspending the federal gas tax.
Yahoo Finance has provided this information for your perusal and convenience. At the White House’s South Court Auditorium on June 22, US Vice President Joe Biden discussed gas prices. It was taken by Drew Angerer for the Getty Images )
According to the American Automobile Association’s most recent data, gas prices have risen from around $3 a gallon just months ago to about $5 a gallon today. In the wake of Russia’s invasion of Ukraine, there have been a number of factors that have contributed to the rise in oil prices.
Biden’s proposal includes a three-month suspension of the federal gas tax as well as offsets to ensure that the Highway Trust Fund, which has had financial difficulties in recent years and is largely funded by gas taxes, is not harmed.
Federal gas taxes, which are currently 18.4 cents per gallon, would be suspended for three months, according to White House estimates.
Make it a little easier for the American people to breathe’
Legislators who have been skeptical of the idea in recent months and have been widely criticized from various corners will have to face the new push in the coming months.
Republican Leader Mitch McConnell of Kentucky ridiculed Democrats’ idea of a gas tax holiday earlier this year as a “half-baked proposal” that wouldn’t work.
A federal gas tax holiday is also opposed by Nancy Pelosi in the House of Representatives, who claims that the savings won’t necessarily trickle down to consumers.
A suspension has also been criticized by industry experts. A gas tax suspension would have “a very small impact for the consumer,” Lipow Oil Associates President Andrew Lipow said on Yahoo Finance Live on Tuesday.
White House efforts to lower gas prices have included releasing 1 million barrels a day from the Strategic Petroleum Reserve. If this new plan is implemented, it will join those efforts.
Similarly, Biden is urging states to suspend their gas taxes, a move that many have already considered. The president plans to put pressure on oil companies to pass along savings more quickly while also encouraging refinery companies to boost output in the months to come. Oil companies will also be a focus.
On Wednesday, Vice President Biden urged oil companies to share “every penny” of their cost savings with consumers.
Yahoo Finance has provided this information for your perusal and convenience. US There are some areas where gas prices are approaching $7.00 a gallon, like this Chevron station in Los Angeles on June 13. Represented by Lucy Nicholson/REUTERS
In order to make her case directly, Energy Secretary Jennifer Granholm is scheduled to meet with CEOs of the seven largest oil refineries on Thursday. Recently, Vice President Joe Biden sent out a letter to major oil refineries in which he denounced their “unacceptable profits.”
“A discussion to see whether there are some concrete near-term solutions and ways the federal government can be helpful to bring that additional capacity online as quickly as possible,” a senior administration official tells the New York Times.
According to them, “we’re certainly taking a constructive, actionable, and pragmatic approach to this.”
Washington, DC-based Ben Werschkul writes and produces content for Yahoo Finance.
Business and financial news can be found here.
Yahoo Finance has the most up-to-date financial and business information.
For iOS or Android, get the Yahoo Finance app.
Become a fan of Yahoo Finance on social media platforms such as Twitter (@YahooFinance), Facebook (@YahooFinance), Instagram (@