US President Joe Biden speaks of efforts to reduce high gas prices at the South Court Auditorium in the Eisenhower Executive Office Building in Washington, DC on June 22, 2022.
Jim Watson | AFP | Getty Images
President Joe Biden called on Congress on Wednesday to suspend the federal gas tax for 90 days as pump prices soared to record highs.
The federal tax is currently 18 cents for 1 gallon of regular gasoline and 24 cents for 1 gallon of diesel fuel.
“I call on businesses to give this to consumers-all pennies of this 18-cent reduction-” Biden said Wednesday. “I don’t have time to make money right now,” he said.
The president said such a move would not affect the Highway Trust and said other revenues could be used to cover costs of approximately $ 10 billion.
Biden also called on the state to suspend the petrol tax or find other ways to bring some relief.
Still, if you suspend the gasoline tax Stabilize demand It does not address the structural issues of the market.
With the resumption of the global economy, demand for petroleum products has recovered, but supply continues to be curtailed. Lack of refining capacity also increased prices.
“I fully understand that petrol tax holidays alone won’t solve the problem, but that will immediately reassure the family. We’re working on long-term price cuts, so we have a little extra headroom. There is, “Biden said. ..
Prices have risen across the board and inflation is the highest in 40 years, but soaring gasoline prices are particularly noticeable. The national average of a gallon of tax exceeded $ 5 for the first time on record earlier this month.
Biden calls the soaring prices “Putin’s price increase.” He also blamed oil and gas companies for what he calls profits at the expense of consumers.
Last week he sent a letter to the CEO of the largest refining company, urging him to increase production. Industry executives say that if you want to expand your business, you can’t because of labor shortages and other issues.
“”[M]The y message is simple. For companies that run gas stations and set their prices on pumps, this is a time of war … these are not normal times. Lower the price you are charging for your pump to reflect the cost you are paying for your product, “he said.
Biden said these measures could reduce the price of pumps by more than $ 1 per gallon. “It doesn’t relieve all the pain, but it will be a great help,” he said.
It is not yet known if Biden’s call has gained support at Capitol Hill.
“Although in good faith, this policy can only provide a small relief, and a $ 10 billion hole in the Highway Trust that needs to be filled if you want to continue repairing a collapsing bridge and deal with the surge in road deaths. Just open up. Build a modern infrastructure system. ” Oregon Democrat and Chairman of the House Transport Infrastructure Commission, Rep. Peter Defazio, said.