Gas Tax Holiday

What is the meaning of a gas tax holiday?

The three-month gas tax holiday would eliminate the 18 cents per gallon in gas and 24 cents per gallon in Diesel taxes that consumers typically pay at the pump. Drivers pay federal gas taxes that go toward the Highway Trust Fund, which the administration claims won’t be badly impacted by the tax holiday since the deficit is at a low where the nation can “afford” it.

What about state gas taxes?

Additionally, states are asked to halt their gas taxes. While Illinois and Colorado have postponed previously scheduled tax and fee hikes, Connecticut and New York have already temporarily paused their gas taxes.

Additional actions.

President Biden also announced other actions to take in order to lower de price of gas and diesel.  This actions are the following:

  • The White House announced the release of a record 1 million barrels per day from the Strategic Petroleum Reserve, which just last week a leading oil market analyst confirmed has been critical to keeping prices from rising even more.
  • President Biden urged international partners to join his initiative, releasing a combined 240 million barrels of oil onto the market..
  • He expanded access to biofuels like E15—gasoline that uses a 15 percent ethanol blend—to increase supply and lower prices at thousands of gas stations across the country.

He and his Administration are engaging with oil and refining companies to ask them to work with the Administration to bring forward concrete solutions that increase refinery capacity and output. Secretary Granholm is meeting with these CEOs

Source: The White House – Briefing room