Biden says he plans decision on gas tax holiday this week

Biden says he plans decision on gas tax holiday this week

President Biden said Monday that he wants to make a decision this week on whether to ask Congress to adopt a federal gas tax holiday to combat record-high prices.

“Yes I’m considering it,” Biden told reporters on the beach near his vacation home in Delaware. “I hope I have a decision based on the data I’m looking for by the end of the week.”

In response to a reporter’s follow-up question, Biden said he was also considering sending Americans gas rebate cards.

“That’s part of what we’re considering, that’s part of the whole operation and I’m just not in a position to answer that right now,” he said.

Treasury Secretary Janet Yellen and Energy Secretary Jennifer Granholm said Sunday that Biden was looking at temporarily lifting the federal gas tax of 18.3 cents per gallon to ease the pain at the pump as the average price of regular gas hovers around $5 a gallon nationwide.

Biden administration officials confirmed that a federal gas tax holiday is an option to deal with high prices, like those facing New York and the rest of the country.
Getty Images

“President Biden wants to do anything he possibly can to help consumers,” Yellen told ABC News. “Gas prices have risen a great deal and it’s clearly burdening households. So he stands ready to work with Congress and that’s an idea that’s certainly worth considering.”

On CNN, Granholm insisted that Biden “is doing everything he can within his power, including releasing a million barrels per day at the Strategic Petroleum Reserve,” to deal with worldwide fuel shortages following Russia’s invasion of Ukraine and subsequent sanctions on Moscow by the West.

“But he’s not doing everything that he can do,” countered host Dana Bash. “One option is to pause the national gas tax … Why hasn’t that happened yet?”

​Treasury Secretary Janet Yellen said President Biden is willing to work with Congress on a potential gas tax holiday.
​Treasury Secretary Janet Yellen said President Biden is willing to work with Congress on a potential gas tax holiday.
AP Photo/Amanda Andrade-Rhoades, File
Granholm warned that lifting the gas tax could hurt infrastructure projects.
Granholm warned that lifting the gas tax could hurt infrastructure projects.
AP Photo/Evan Vucci

“Yes. I mean, it’s one of the tools,” Granholm said. “First and foremost, we want to increase supply. We also want to take a look at consumer relief directly. And that is …”

“Right, but this is 18 cents per gallon,” interjected Bash, who later added: “That’s a lot when you add up it. So, why not do it now?

“It’s certainly one of the things the president is evaluating,” Granholm answered. “I know this is what’s been happening in many states as well. Honestly, the whole array of tools are still being pressed. He’s used the biggest tool that he has, but he’s obviously very concerned about this continued upward pressure on prices.”

President Joe Biden speaks with reporters as he walks on the beach in Rehoboth Beach, Delaware, June 20, 2022
Last week, President Biden lashed out at US oil producers in a letter accusing them of raking in record profits while Americans struggle with high gas prices.
SAUL LOEB/AFP via Getty Images

The energy secretary went on to caution that lifting the gas tax would deprive infrastructure projects of funding provided for in last year’s bipartisan infrastructure law.

to be able to do that,” she said. “So that’s one of the challenges, but I’m not saying that that’s off the table … It’s certainly something the administration is considering, just like I know governors across the country are considering that.”

Republicans in Congress have consistently expressed opposition to lifting the federal gas tax, saying it would do nothing to fix the problem of high prices.

“It’s a bad joke,” Sen. John Cornyn (R-Texas) said in February. “It’s a non-solution.”

The Organization of the Petroleum Exporting Countries agreed earlier this month to increase production, and Biden will travel to Saudi Arabia next month – a controversial trip because of Saudi Crown Prince Mohammad bin Salman’s involvement in the murder of journalist Jamal Khashoggi in 2018.

Last week, the president lashed out at US oil producers in a letter accusing them of raking in record profits while Americans struggle with high gas prices. 

“[A]t a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable,” Biden wrote in the letter.


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