US President Joe Biden on Wednesday asked Congress for a three-month suspension of the federal gasoline tax. In a statement from the White House, the US government highlighted the “dramatic” rise in fuel prices around the world, in the face of Russia’s war in Ukraine, and the “significant challenge” this poses for working American families.
Biden says he encourages oil companies and refiners to expand capacity and production in order to get more supply to the market.
He urges Congress to withdraw the federal tax for three months and also asks states to adopt similar tax exemptions in order to provide “some direct relief” to consumers.
The US government recalls that it currently charges US$0.18 per gallon of gasoline and US$0.24 per gallon of diesel.
Biden concedes that the temporary withdrawal of the federal tax on gasoline alone will not be enough to offset rising costs for Americans, but argues that Congress should do whatever is necessary to help them, in this context.