Tax holiday: President Biden's plan can help Americans save 18.4 cents a gallon on gasoline

Edited By: Vyomica Berry
Washington Updated: Jun 21, 2022, 11:40 AM(IST)

File photo: US President Joe Biden looks on after delivering remarks in the Rose Garden of the White House in Washington Photograph:( Reuters )

Story highlights

The Biden administration, which is increasingly looking for ways to spare the public from higher prices at the pump, is going to meet this week with CEOs of the major oil companies to discuss rising oil prices

In order to help American consumers save 18.4 cents a gallon on gasoline, President Joe Biden said that he’s considering a federal holiday on the gasoline tax.

''I hope to have a decision based on the data,'' he told reporters.

Following Russia's invasion of Ukraine in February, gasoline prices started climbing and are currently averaging just under $5 a gallon, according to auto club AAA.

The Biden administration, which is increasingly looking for ways to spare the public from higher prices at the pump, is going to meet this week with CEOs of the major oil companies to discuss rising oil prices.

Saying they are making excessive profits when people are feeling the crunch of skyrocketing costs at the pump and inflation, Biden lashed out at oil companies.

Biden said, “I want an explanation for why they aren’t refining more oil.”

In addition to sending a letter last week to oil refiners urging them to increase their refining capacity, the Biden administration has already released oil from the US strategic reserve and increased ethanol blending for the summer.

Consumers saved at the pump because of gas tax holidays in Connecticut, Georgia and Maryland, according to estimates released by the Penn Wharton Budget Model.

Expressing an openness to a federal gas tax holiday to give motorists some relief, Treasury Secretary Janet Yellen, during a visit to Canada said the United States is in talks with allies to further restrict Russia's oil revenues by capping the price it would get for its crude.
 

(With inputs from agencies)

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