Suspending the federal gasoline tax may sound like welcome relief for US drivers paying some of the highest pump prices on record right as the summer travel season kicks into high gear. But experts warn it could bring mixed results — or even higher gas prices in the end.
On Wednesday, President Joe Biden issued a statement calling on Congress to enact a three-month federal gas tax holiday, blaming high prices and supply shortages on Russia’s war in Ukraine. If enacted, the move would waive the 18.4-cent national tax currently tacked onto each gallon of gasoline sold through September, and 24-cent-tax on diesel. Pegging the cost at $10 billion, Biden is asking Congress to find other revenues for the Highway Trust Fund. He is also calling on states and local governments to provide additional relief to consumers.