U.S. pumps are facing a crisis in 2022 after gas prices hit record highs across the country.
To defuse tensions ahead of the July 4th weekend, President Joe Biden revealed he is considering suspending the federal gas tax at the pumps.
What is the Federal Gas Tax Holiday?
On June 20, 2022, Biden told reporters in Rehoboth Beach, Delaware that he expected to make a decision on withholding the federal gas tax soon.
“I expect to make a decision by the end of the week based on the data I’m looking for,” Biden said. CNN,
The pause would essentially save Americans about 15 cents per gallon, but it would require Congress to act sooner.
A White House official told CNBC Getting Congress to approve such measures would be challenging.
“Republicans don’t want gas prices to go down,” the official said.
“They want Biden to suffer.”
Another money-saving option Biden is considering is gas rebate cards, but it’s not clear how they will work.
What is the National Average Gas Price?
On June 20, the national price per gallon was $4.98, according to ABC News,
This price has been burdening households for months and is expected to worsen in the summer months.
“Gas prices have risen significantly, and that’s clearly putting a burden on households,” Yellen said via ABC News.
“So [the president] ready to work with congress [gas tax holidays are] An idea that is certainly worth considering.”
Many believe that rising prices and food shortages are signs that we are headed for another recession.
Tesla founder Elon Musk has also been vocal in recent weeks about his concerns about the recession, cutting 10 percent of Tesla’s workforce because he had a “super bad feeling” about the economy. insider,
The last recession occurred between December 2007 and June 2009.
Who sets gas prices?
Many people believe that the government controls gas prices, but this is not true.
American Petroleum Institute Turns out it is actually the price of crude that determines how much we pay at the pump.
“Oil prices hit a seven-year high amid persistent global supply crunch, workforce crunch, increased geopolitical instability in Eastern Europe, economic rebound after the early stages of the pandemic, and policy uncertainty from Washington,” the API said. Huh.”
While the government doesn’t control prices, API notes that there are things it can do to help ease the situation, including policies that increase supply in the United States.
Right now, according to API, the primary factors affecting the price of gas include global crude oil costs (61 percent), refining costs (14 percent), distribution and marketing costs (11 percent), and federal and state taxes. (14 percent).