Biden will also call on states to take steps to eliminate their own taxes on gas and diesel. And he will tell oil refineries to increase their capacity ahead of a planned meeting this week with government officials.
Taken together, senior administration officials say, the steps Biden will ask could reduce the price of a gallon of gas by $ 1. However, this figure relies on a number of steps that are completely out of the president’s control, and officials have said Biden will not “talk to her as an accurate figure” but will use it as an example of what his suggestions.
“Suspending the federal gas tax alone will not solve the problem we face, but it will provide families with little room to breathe as we continue to work to reduce prices in the long run,” said a senior administration official. in front of reporters.
Even some Democrats have previously questioned the gas tax holiday, noting that the tax provides an important source of funding for road construction. Officials said Biden would call for the use of other sources of revenue to make up for the shortfall.
Some economists also say the savings passed on to consumers may be minimal, as retailers simply raise the base price of gas to make up the difference.
A senior administration official acknowledged the criticism, saying Biden “absolutely urges companies to make sure these savings are passed on to consumers.”
But the official acknowledged that simply suspending the tax “will not solve the whole problem.”
“This is something that can be done to take a real step to alleviate some of this pain in the pump, and we see it as part of a set of policies that are designed to provide that relief, including policies that are focus on the supply side, “the official said.
But even there, quick action seems difficult. The refining capacity, which was cut during the Covid-19 pandemic, will take months to return online, and refineries are now operating at almost 90% of their capacity.
“We certainly approach it in constructive, actionable and pragmatic ways. “Again, I think the American people would like their leaders to do that,” said a second senior administration official, noting Thursday’s meeting with seven top officials and Energy Secretary Jennifer Granholm.
Add Comment