The average price of a gallon of gasoline hit a record level of $5, up from about $3 a year ago.
The rebound is having repercussions on the national economy, dragging the approval rating of the US president, which is below 40%.
“The president is aware of the significant challenge high gas prices pose to working families,” as gasoline costs “increased dramatically around the world, by nearly $2 a gallon since Putin massed his troops in the Ukraine’s borders,” the officials said.
Biden “understands that this suspension of the gasoline tax is not going to offset by itself the increased costs that we are seeing,” they admitted.
“But he believes that at this unique time when the war in Ukraine imposes costs on American families, Congress must do what it can to relieve those families,” they added.
Suspension of this 18-cent federal tax, along with the 24-cent-per-gallon diesel tax during the summer travel season, would cost an estimated $10 billion to the highway infrastructure fund normally funded by these levies.
The administration ensures that other income can compensate for that income cut.
Likewise, the White House asks states to temporarily abolish their taxes or provide compensation mechanisms to motorists.
Several states have already done so, such as Connecticut and New York. On average, states charge 30 cents in taxes per gallon of gasoline.
But according to analysts, some 46 states have not yet acted, including California, where gasoline is the most taxed and the most expensive, exceeding 6 dollars a gallon.
It will work?
Energy Secretary Jennifer Granholm will meet with refiners on Thursday to try to convince them to increase their capacities.
The president is taking a political risk by trying to suspend taxes, a move criticized before it was known he would propose it, even from within his own political camp.
The number one of the Democratic majority in the House of Representatives, Nancy Pelosi, last week rejected the idea that, according to her, is “show”.
Some experts also expressed skepticism about the effect of the measure, which does not address the underlying problem: strong demand versus restricted supply.
