Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News
Sponsored By
Biden Calls on Congress to Suspend the Federal Gas Tax for 3 Months
President asks state and local governments to provide additional relief. The president asks state and local governments to provide additional relief as gas prices hover around $5 a gallon on average nationally.
2 Min Read
Photograph: Shutterstock
Consumers are feeling the heat, both literally and figuratively as grocery prices rise and gas prices soar.
In an effort to provide some relief, President Joe Biden is calling on Congress to suspend the federal gasoline tax for three months, through September, without taking money from the Highway Trust Fund. The president is also calling on states to take similar action to provide some direct relief, whether suspending their own gas taxes or helping consumers in other ways.
Currently, the federal government charges an 18-cent tax per gallon of gasoline and a 24-cent tax per gallon of diesel; however, as gas prices hover around $5 a gallon on average nationally, the president is temporarily shifting priorities to lessen the amount consumers must spend at the pump.
Recent research from Chicago-based IRI found that more than half (55%) of consumers are extremely worried about higher gas prices. Additionally, nearly all consumers (95%) are concerned about rising prices, in general, with 48% of those saying they are very concerned.
The price of oil has jumped due to escalations stemming from the Russian war on Ukraine, as countries choke off Russian oil supply via sanctions, pushing supply down at a time of rising demand. In addition, U.S. refining capacity has fallen by some 1 million barrels per day over the past three years.
Earlier this week, the nation’s average gas price declined by 4.2 cents to $4.97 per gallon, according to GasBuddy. The national average is up 37.3 cents from a month ago and $1.92 per gallon higher than a year ago. The national average price of diesel has risen 2.6 cents in the last week and stands at $5.80 per gallon.
“I’m hopeful the trend may continue this week, especially as concerns appear to be mounting that we may be on the cusp of an economic slowdown, putting downward pressure on oil. But the coast isn’t yet entirely clear. We could see the national average fall another 15 to 30 cents, if we’re lucky, by the time fireworks are flying, barring any unexpected shutdowns at a time when the market is extremely sensitive to such,” said Patrick De Haan, head of petroleum analysis for Boston-based GasBuddy.
A version of this story appeared on WGB sister site, CSPDailyNews.com.
