President Biden calling on Congress to suspend federal gasoline taxes

Generic gas taxes graphic.
Generic gas taxes graphic.(MGN)
Published: Jun. 22, 2022 at 10:25 PM MDT
Email This Link
Share on Pinterest
Share on LinkedIn

COLORADO SPRINGS, Colo. (KKTV) - The federal gas tax has not been changed since 1993, but now President Biden is calling on Congress to suspend the tax amidst record high prices. If Congress gives the go ahead the suspension would last three months.

The Federal gas tax currently sits at 18.4 cents-per-gallon and 24.4 cents-per-gallon for diesel fuel.

In a tweet released by Gas Buddy they estimate suspending the tax could save drivers anywhere from $2 - $5. AAA Regional Director of Public Affairs Skyler McKinley, is not as optimistic.

McKinley explains the federal gas tax is an excise tax. This means consumers do not pay it directly- the oil companies do.

The demand for gas is high and supplies are low, which leads McKinley to believe that oil producers and refiners will pocket most of the savings. He says there is little incentive for oil companies to compete and reduce their prices.

Copyright 2022 KKTV. All rights reserved.