President Biden requests federal gas tax to be suspended for 90 days in Congress

• President Joe Biden urged Congress on Wednesday to temporarily suspend the federal gas tax.
• The federal tax is presently 18 cents and 24 cents, respectively, per gallon.
• Biden declared, “Now is not the time for profiting.”

In light of record-high gas prices, President Joe Biden urged Congress on Wednesday to temporarily suspend the federal gas tax.

For ordinary gasoline and diesel fuel, the federal tax is presently 18 cents and 24 cents, respectively, per gallon.

On Wednesday, Biden added, “I call on the companies to pass this along — every penny of this 18 cent savings — to the customer.” He declared, “Now is not the time for profiting.”

The president claimed that such a change would not affect the Highway Trust Fund and that the roughly $10 billion expense could be covered by other income.

Additionally, Biden urged states to find alternative methods to provide aid, like suspending their gas taxes.

Read more: Biden to Demand 3-Month Gas Tax Suspension

However, several were quick to point out that the market’s structural problems won’t be resolved by postponing the gas tax; rather, it will only maintain demand.

While supply has remained tight, demand for petroleum products has increased as the world’s economies have restarted. Prices have increased as a result of a shortage of refining capacity.

“I am aware that the gas tax break by itself won’t solve the issue. But it will bring some quick relief to households. Just a little breathing room while we keep striving to permanently lower prices, Biden remarked.

With inflation at a 40-year high, prices are growing everywhere, but the rise in fuel prices stands out in particular. This month was the first time in history that the national average for a gallon of gasoline exceeded $5.

Read more: Biden is anticipated to call for the suspension of the federal gas tax

Biden referred to the price increase as “Putin’s price rise.” Additionally, he has accused oil and gas firms of putting profits over customers.

He urged the CEOs of the biggest refining businesses to improve output in a letter he addressed last week. Industry executives claim that despite their desire, they are unable to expand operations due to labor shortages and other problems.

“[M]y message is straightforward: this is a time of war; these are not ordinary times, to the firms controlling gas stations and setting those prices at the pump. Reduce the retail price you are offering to reflect the price you are paying for the product, he advised.

According to Biden, these measures may cause gas costs to plummet by at least $1 per gallon. It doesn’t completely take away the discomfort, but it will certainly assist, he added.

It is still unclear whether Biden’s request will find favor on Capitol Hill.

Read more: Biden should quit criticising Big Oil and instead pursue a different strategy

Rep. Peter DeFazio, a Democrat from Oregon and chair of the House Committee on Transportation and Infrastructure, said, “Although well-intentioned, this policy would at best achieve only minimal relief while blowing a $10 billion dollar hole in the Highway Trust Fund that would need to be filled if we want to continue to fix deteriorating bridges, address the spike in traffic deaths, and build a modern infrastructure system.