With gas prices averaging $5 per gallon nationwide, President Joe Biden said he was weighing a gas tax holiday for American drivers.
“Yes, I am considering it. I hope to have a decision based on the data I’m looking for by the end of the week,” Biden said on Monday during a gaggle.
While Biden’s gas tax holiday proposal centers on the Federal gas excise tax, White House officials hope it will spill over to convince states to ease up their own gas taxes tacked on top of the per-gallon price.
California, however, is unlikely to be persuaded. Golden State Democrats have sworn off suspending the gas tax or halting an inflation-triggered 3-cent-per-gallon increase set to come into effect on July 1.
Instead, California’s Assembly Speaker announced the formation of a select committee to investigate alleged “gas price gouging.”
Currently, states add on an average additional 31 cents to price of a gallon of regular gas and 32 cents to the gallon for diesel as their state gas tax.
The federal gas tax is 18.4 cents per gallon for regular gas and 24.4 cents a gallon on diesel. This tax revenue is funds Federal infrastructure such as new and safe roads, especially on interstate highways.
Although the recent weekend saw gas prices decreasing below $5, as reported by AAA, today’s prices are seeing a $1.91 increase from prices consumers were paying for one year ago.