As fuel costs continue to skyrocket, President Joe Biden will propose a tax holiday in hopes of providing American consumers and businesses with some relief at the pump.
Senior White House officials say that on Wednesday at 2 p.m., Biden will deliver a speech calling on Congress to suspend federal taxes on gasoline and diesel fuel through September.
Currently, the federal tax on diesel is 24.4 cents per gallon. The federal tax on gas is 18.4 cents per gallon.
The White House acknowledges that the federal fuel tax holiday would not be a full fix for surging fuel costs but officials say that it would provide Americans with a bit of “breathing room.”
The White House will also call on states to suspend fuel taxes, according to reports.
Additionally, Biden signaled that he will ask oil refineries to increase their capacity to bring more fuel into the market to help lower costs.
White House officials believe that if all of these measures are adopted, the cost of a gallon of gas could drop by about a dollar.
The federal fuel tax holiday would require action from Congress. Both Democrats and Republicans have signaled that they are skeptical about whether a fuel tax holiday would be effective at bringing significant relief to Americans at the pump. Additionally, some economists have suggested that a fuel tax holiday would drive up already high inflation rates.