Biden Asks Congress To Pause Gas Tax To Help Lower Record Pump Prices

• U.S. President Joe Biden on June 22, 2022, called on Congress to pass a three-month suspension of the federal gasoline tax to help combat record pump prices and provide temporary relief for American families this summer. The president also urged states to temporarily suspend state fuel taxes, which are often higher than federal rates, the official said. 
• He will also be challenging major oil companies to bring ideas on how to bring back idled refining capacity when they meet with his energy secretary on June 23, 2022. 
• Biden and his advisers have been discussing the issue for months amid increasing pressure to act as record-high gas prices weigh down the president's poll ratings and cast a dark cloud over Democrats' chances of retaining congressional power in November's elections. A suspension of the 18.4 cents per gallon federal gasoline tax and 24.4 cents diesel tax would require congressional approval, likely making Biden's pitch largely symbolic. 
• Lawmakers in both parties have expressed resistance to suspending the tax, with some Democrats, including House of Representatives Speaker Nancy Pelosi, worried the move could have a limited effect on prices if oil companies and retailers pocket much of the savings. Biden asked Congress to suspend the fuel tax through September, a move that will cost the Highway Trust Fund roughly $10Bn in foregone revenue but could be made up from other areas of a budget that will experience revenue growth in the coming months.

(Source: Reuters)