President Joe Biden has announced that he will make a decision surrounding a gas tax holiday by the end of the week. On Monday (June 20), he revealed that he is considering the federal holiday as a response to surging gas prices, AP News reports.
In an effort to provide Americans with a break from the rising gas prices affecting the nation, Biden’s administration has looked for ways to decrease prices. Nationwide, the price of gas currently sits at an average of slightly less than $5 per gallon.
“Yes, I’m considering it,” Biden told reporters. “I hope to have a decision based on the data- I’m looking for by the end of the week.” Gas prices initially increased following the Russian invasion in Ukraine back in February.
Just last week the Biden administration sent a letter to oil refiners, urging them to increase their refining capacity in order to lower the prices of gas. In addition to that, the administration also released oil from the U.S. strategic reserve and increased ethanol blending for the summer. While prices have lowered some, it hasn’t nearly been enough to assist Americans working to maintain within the current economy.
According to the Penn Wharton Budget Model estimates revealed on Wednesday (June 15), consumers saw a better advantage at the pump thanks to gas tax holidays. States who have participated include Connecticut, Georgia, and Maryland. Customers came out better than service stations and other companies in the energy sector thanks to the move.
Treasury Secretary Janet Yellen previously opened up about the willingness for a federal gas tax holiday during an appearance on ABC’s “This Week.” “Gas prices have risen a great deal and it’s clearly burdening households,” she explained.
As of Sunday (June 19), a gallon of unleaded fuel in the U.S. currently sits at an average of $4.98. The price is up $3 from a year ago.