Biden’s decision to call for a federal gas tax holiday — a move once derided as a gimmick by Barack Obama and viewed skeptically by leading economists and lawmakers who said it is not enough to solve the problema of surging energy prices– nearly certainly will not make it through Congress, especially as it faces blowback from the President’s own allies on Capitol Hill.
Joe Biden will also call on states to suspend local fuel taxes and urge oil refining companies to use profits to refine more oil and gasoline and lower prices at the pump – just days after accusing executives of profiteering and ¨worsening the pain¨ for consumers.
The federal government charges an 18.4-cent tax per gallon of gasoline and a 24.4-cent tax per gallon of diesel. Suspending the tax for three months — through the end of September, will cost about $10 billion, the White House said.
Biden previously suggested taking oil from the Strategic Petroleum Reserve (SPR) and lifted the ban on ethanol-containing gas sale to cut costs.
The most optimistic people on this matter strongly believe gas prices could low by $1, but economists assured it will depend on a series of measures that are beyond Joe Biden’s control.