Decision on gas tax holiday can be made this week

President Joe Biden said on Monday that he will soon decide whether there would be a federal gas tax holiday.

This could save US consumers 18.4 cents per gallon.

“Yes, I’m considering it,” Biden told reporters in Delaware. “I hope to make a decision based on the data I’m looking for by the end of the week.”

However, the president didn’t mention that a tax cut on diesel fuel of more than 24 cents, which, according to the Energy Information Administration, is a record $5.718 per gallon.

The administration is increasingly sparing the public from high gas station prices, which began rising last year and have risen since Russia’s invasion of Ukraine in February.

Gas prices nationwide average just under $5 a gallon, according to the AAA.

Biden said members of his team are due to meet with major oil executives this week to discuss rising prices. Biden criticized oil companies, saying they are making windfall profits when people experience soaring fuel costs and inflation.

The administration has already released oil from the US strategic reserve and increased the amount of ethanol for the summer, in addition to sending a letter to refiners last week calling for more processing capacity.

However, these efforts have not yet resulted in a significant reduction in price pressures, so the administration is now considering a gas tax holiday. Gasoline and diesel taxes help pay for roads.

Penn Wharton’s budget model released estimates Wednesday showing consumers saved on gas stations due to gas tax holidays in Connecticut, Georgia and Maryland. Most of the savings went to consumers rather than service stations and others in the energy sector.

The gas tax waiver is likely to run into difficulties in congressional approval.

Democrats have a narrow majority, and Democratic House Speaker Nancy Pelosi and Senate Minority Leader Mitch McConnell have expressed skepticism about such a move in the past.