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Biden asks Congress to pause gas tax to help lower record pump prices

By Jarrett Renshaw and Nandita Bose WASHINGTON (Reuters) -U.S. President Joe Biden on Wednesday called on Congress to pass a three-month suspension of the federal gasoline tax to...

By Jarrett Renshaw and Nandita Bose

WASHINGTON (Reuters) -U.S. President Joe Biden on Wednesday 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.

"We can bring down the price of gas and give families just a little bit of relief," Biden said in a White House address.

The president also urged states to temporarily suspend state fuel taxes, which are often higher than federal rates, the official said, and will challenge major oil companies to bring ideas on how to bring back idled refining capacity when they meet with his energy secretary on Thursday.

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 cent 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 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 $10 billion in forgone revenue but could be made up from other areas of a budget that is seeing revenue grow and deficits shrink as the United States emerges from the COVID-19 pandemic.

Peter DeFazio, a Democrat and the chair of the House Committee on Transportation and Infrastructure, told reporters Wednesday a federal gas tax holiday would provide "miniscule relief" while blowing a budget hole in a Highway Trust Fund needed to fix crumbling bridges and build a modern infrastructure system."

Some states, such as New York and Connecticut, have already paused state fuel taxes, while others have floated ideas such as consumer rebates and direct relief.

Refiners are struggling to meet global demand for diesel and gasoline, exacerbating high prices and aggravating shortages.

"Pausing the federal gas tax will certainly provide near-term relief for U.S. drivers, but it won’t solve the root of the issue – the imbalance in supply and demand for petroleum products," a spokesperson for the American Fuel and Petrochemical Manufacturers industry group said.

Longer-term policies are still needed to boost U.S. energy production, it said.

U.S. pump prices are averaging near $5 a gallon as soaring demand for motor fuels coincides with the loss of about 1 million barrels per day of processing capacity. In the last three years many plants were closed when fuel demand cratered at the height of the pandemic.

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30-06-2022 05:24:39 (UTC+7)

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Adidas AG

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 EUR/USD1.0441Neutral
 GBP/USD1.2122↑ Buy
 USD/JPY136.57↑ Sell
 AUD/USD0.6880↑ Buy
 USD/CAD1.2890↑ Sell
 EUR/JPY142.60↑ Sell
 EUR/CHF0.9970Neutral
 Gold1,818.70↑ Sell
 Silver20.733↑ Sell
 Copper3.7807↑ Buy
 Crude Oil WTI109.70↑ Buy
 Brent Oil112.25↑ Buy
 Natural Gas6.435↑ Sell
 US Coffee C228.05↑ Sell
 Euro Stoxx 503,514.32Neutral
 S&P 5003,818.83↑ Buy
 DAX13,003.35↑ Sell
 FTSE 1007,312.32Sell
 Hang Seng21,996.89Neutral
 Small Cap 20001,713.32Neutral
 IBEX 358,188.00↑ Buy
 BASF41.580↑ Sell
 Bayer57.62Neutral
 Allianz183.72Buy
 Adidas170.02↑ Sell
 Lufthansa5.813↑ Buy
 Siemens AG101.40↑ Sell
 Deutsche Bank AG8.571Neutral
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank6,805/ 6,865
(0/ 0) # 1,727
SJC HCM6,820/ 6,890
(0/ 0) # 1,751
SJC Hanoi6,820/ 6,892
(0/ 0) # 1,753
SJC Danang6,820/ 6,892
(0/ 0) # 1,753
SJC Nhatrang6,820/ 6,892
(0/ 0) # 1,753
SJC Cantho6,820/ 6,892
(0/ 0) # 1,753
Cập nhật 30-06-2022 05:24:41
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$1,818.00-0.51-0.03%
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Ngoại tệMua vàoBán ra
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Cập nhật lúc 18:53:49 29/06/2022
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