President Joe Biden will implore Congress to suspend federal gas and diesel taxes for the three months ending September amid record-high prices at the pump and record-low approval ratings before November’s midterm elections.
Biden will make the pitch to lawmakers in remarks Wednesday, although senior administration officials concede it “alone won’t fix the problem we face, but it will provide families a little breathing room.”
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Attributing the sticker shock experienced across the global energy market to Russian President Vladimir Putin‘s Ukraine invasion and the COVID-19 pandemic, aides previewing Biden’s speech said he would also call on states to suspend their counterpart taxes or offer other forms of relief, such as rebates. They amplified, too, Biden’s criticism of oil companies for not increasing their supply and refining capacity ahead of a meeting this Thursday with Energy Secretary Jennifer Granholm but added the president was not advocating a windfall profits tax. Retailers will be similarly urged to convey savings to consumers.
“These actions by the federal government, states, industry, and retailers could drop prices at the pump by up to $1 a gallon or more,” one staffer said.
Officials did not elaborate on White House legislative outreach already conducted on Capitol Hill, though proposals have previously circulated among House and Senate members.
With the federal taxes levied at 18 cents per gallon of gasoline and 24 cents per gallon of diesel, the White House estimates the temporary program will cost the Highway Trust Fund roughly $10 billion. But that revenue can be replaced using other sources since Biden has reduced the federal deficit by $1.6 trillion this year, according to one aide. The HTF supports road and public transportation investments and improvements.
“The purpose of the suspension is really to address the unique moment that we’re in and with a particular focus on the summer driving season,” the staffer said.
The same official insisted the tax suspension was “absolutely” not “a stepping back” of Biden’s commitment to a clean energy economy or his climate goals.
Biden and his aides have repeatedly apportioned blame to oil refineries as the national average price of gas hovers around $4.97 per gallon. Biden quipped Tuesday that Chevron Corporation CEO Michael Wirth is “mildly sensitive” when asked for his response to Wirth’s complaints the president has sought to “criticize and at times vilify” the industry.
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“I didn’t know they’d get their feelings hurt that quickly,” Biden said of oil executives. “We need more refining capacity. This idea that they don’t have oil to drill and bring up is simply not true.”
