The national average price of a gallon of gasoline has fallen to $4.981, but that’s barely below the record all-time high of $5.016 which was set on June 14th.
However, there could be some relief on the horizon as President Biden has confirmed he’s considering a federal gas tax holiday. Speaking to reporters in Delaware, Biden acknowledged he’s “considering it” and hopes to “have a decision based on the data … by the end of the week.”
While it remains unclear if Biden will sign off on the proposal, many drivers would likely welcome the move. As USA Today noted, the federal tax on gasoline is 18.4 cents per gallon and 24.4 cents for diesel. As a result, a 20 gallon fill up during the proposed gas tax holiday could save drivers $3.68 with gas or $4.88 with diesel.
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The proposal has drawbacks as Energy Secretary Jennifer Granholm noted over the weekend. Appearing on CNN’s State of the Union, she acknowledged “Part of the challenge with the gas tax, of course, is that it funds the roads, and we just did a big infrastructure bill to help fund the roads.”
Granholm isn’t the only Democrat noting problems with the proposal as USA Today noted former Treasury Secretary Larry Summers called the idea of a gas tax holiday “shortsighted, ineffective, goofy and gimmicky.”
That being said, President Biden is eager to do something to lower gas prices as American budgets are being attacked on all fronts thanks to the worst inflation in decades. It also appears a federal gas tax holiday could be easier to enact than the so-called gas rebate cards that were floated last week.
NBC News is reporting the White House is expected to make an announcement during the Fourth of July holiday weekend, when millions of Americans typically hit the road. However, it appears relief won’t be immediate as the gas tax holiday would require congressional approval and this could prove challenging.