By on June 22, 2022

National fuel prices are currently averaging right around $5.00 per gallon in the United States. However, there are plenty of states with stations listing gasoline well above $6.00 per gallon with diesel being driven even higher. This has started to wreak havoc on the trucking industry, which is now seeing companies pausing shipments to renegotiate contracts, and infuriated consumers who remember a gallon of gas being $2.17 during the summer of 2020.

Earlier this year, Congress and the White House suggested suspending the federal fuel tax to alleviate the financial burden. But the notion was walked back, as prices were relatively low at the time (roughly $3.50 per gallon) and criticisms swelled that this simply exchanged one problem for another. Four months later and things are looking rather desperate, with the Biden administration revisiting the premise of pausing fuel tax to help soften the blow of record-breaking prices at the pump. 

But the fuel tax has been pegged at 18.4 cents per gallon for ages, making any suspensions a drop in the bucket — or perhaps more accurately, a literal squeeze into the tank. It also effectively forces the government to figure out another way to help the United States’ ailing roadway infrastructure, with concerned parties fretting over where that money will be coming from. Despite the passing of the $1.2 trillion infrastructure bill, only $110 billion of the 2,702-page legislative package goes toward funding the repair and improvement of bridges and roads. The rest has been earmarked for advancing public transpiration, Amtrak funding, improving the national energy grid, clean-energy initiatives, spurring electric vehicle adoption, broadband internet, and water protection. However, the previous $300 billion slated for the Highway Trust Fund over the next five years has also remained in place.

Meanwhile, the federal gas tax rakes in roughly $45 billion per year and accounts for almost the entirety of the federal spending used for servicing America’s highways per year. Something which President Joe Biden recently said he had considered pausing.

“Yes, I’m considering it,” Biden told reporters Monday. “I hope to have a decision based on the data. I’m looking for by the end of the week.”

The White House has been critical of Russia’s invasion of Ukraine and has often faulted the situation as the leading cause of high fuel prices. While it certainly hasn’t helped things, surging fuel prices had begun long before a single Russian soldier crossed the border. Operating under the assumption that Biden had won the 2020 election, the market reacted to proposed environmental policies that forced the price of oil to climb in November of that year. Fuel prices followed suit, with the invasion of Ukraine simply making the market even more volatile.

But oil concerns had also grown cautious of overproduction after COVID lockdowns forced down demand to a point that oil began trading in the negative. The situation actually became so grim that companies were actually paying people who had the ability to take surplus fuel off their hands in 2020 because they no longer had anywhere to store it.

Jumping back into the present, the Biden administration has done a few things in a bid to help normalize pricing. Biden has released some of the U.S. strategic petroleum supply to the market and the administration plans to continue meeting with the  CEOs of major oil companies to discuss how best to manage the situation. According to The New York Times, another meeting is scheduled for this week. But nothing seems to be working and critics have argued that the White House’s environmental policies and unfettered government spending are at the heart of what’s driving up costs.

From NYT:

The White House and congressional Democrats have discussed a national gas tax holiday as one of the few options for bringing down the cost at the pump, as external factors have been major drivers of surging prices. The high cost of gas looms as a significant liability for Mr. Biden and Democratic lawmakers as the midterm elections approach.

When gasoline prices surged in March, the White House turned to the Strategic Petroleum Reserve, ordering the release of up to one million barrels of oil a day for 180 days in hopes of meeting demand. The overall effect has been limited, and gas prices remain near record highs.

Mr. Biden said on Monday that his team was planning to meet this week with the chief executives of major oil companies. He chastised some of the largest oil companies last week for profiteering while American consumers endured high prices.

Taking into account the average fuel economy of U.S. vehicles, it’s hard to see a suspension of the federal fuel tax making a big difference. The average American drives roughly 14,000 miles per year and owns a vehicle averaging somewhere around 26 miles per gallon. That last number is a little troublesome since the University of Michigan abandoned studying the practical average economy of U.S. vehicles. But it left off around a rather stagnant 25 mpg a few years ago so we’re assuming it’s come up a bit since then.

Still, that only works out to about $99 in savings annually and assumes fuel prices don’t increase through the rest of this year. Based on how much the price of a gallon of gas has spiked already, it’s unlikely that any drivers would actually recoup the additional money they’ve already had to put into their respective tanks. While diesel fuel is higher (at 24.4 cents per gallon), owners of those vehicles will still find themselves in a similar situation.

Considering the unprecedented nature of the times, it’s difficult to assume what the outcome will be. Your author was recently using videogames to unwind and noticed that the real-world fuel prices in California now vastly exceeded those presented in the Cyberpunk 2077 — a game released in 2020 that’s set in an intentionally ridiculous dystopian future focused on a global energy crisis, corrupt governance, crumbling infrastructure, rampant corporate influence, habitual street violence, and unprecedented levels of income inequality. The ridiculousness of the real world is now exceeding what fiction has on offer and does not bode well for any hastily devised schemes designed to temporarily appease voters. People need real and permanent solutions to rising problems and tamping down the swelling price of fuel in a serious manner seems a reasonable request.

But here’s the rub: U.S. corporate price markups and profits are currently at the highest levels witnessed since the 1950s. This includes major oil companies (e.g. ExxonMobil, BP, Shell, Chevron, etc.) that saw their collective Q1 2022 profits triple against the first quarter of 2021. Meanwhile, the Biden administration has repeatedly stated that it wants the U.S. to transition toward renewable energy and all-electric vehicles. Neither group really seems to have a vested interest in solving the problem of fuel prices and one worries that policy will ultimately reflect that.

[Update 6/22/2022: Joe Biden formally asked Congress to suspend the fuel tax for three months on Wednesday. “Today I’m calling on Congress to suspend the Federal gas tax for the next 90 days, through the busy summer season, busy travel season,” he told the press, adding that states could also temporarily pause their own fuel taxes. 

There has been some light criticisms among Democrats, including Rep. Peter DeFazio, chair of the House Committee on Transportation and Infrastructure.

“Although well-intentioned, this policy would at best achieve only minuscule relief while blowing a $10 billion dollar hole in the Highway Trust Fund that would need to be filled if we want to continue to fix crumbling bridges, address the spike in traffic deaths, and build a modern infrastructure system,” DeFazio said in a statement to CBS News. “Furthermore, encouraging state governments to suspend their gas taxes undermines the impact of the Bipartisan Infrastructure Law by reducing funds available to states to spend on infrastructure improvements.”

Though the Biden administration did get the support of its own cabinet. This included U.S. Secretary of Energy Jennifer Granholm, who suggested to the press that the measure would only be part of a large program to help address rising energy costs. However Republicans have predominantly come out against the plan, even going so far to mock it or recalling Barack Obama calling the scheme a “gimmick” when it was pitched by Hillary Clinton during the 2008 presidential campaign.]

[Image: CC7/Shutterstock]

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110 Comments on “White House May Propose Gas Tax Holiday [Updated]...”


  • avatar
    SCE to AUX

    Do we really want the government controlling gas prices?

    • 0 avatar
      JMII

      According to some people the gov already controls gas prices… for example: my guy made prices go down but your guy made them go up. Sorry it doesn’t work that way.

      • 0 avatar
        EBFlex

        “ Sorry it doesn’t work that way.”

        Except it does. When you campaign (well then 2-3 events Xiden had when he wasn’t in the basement) on ending fossil fuel use, doing everything in his power to impede the progress of the entire fossil fuel industry, it’s pretty understandable how prices began to rapidly increase on day one of Xiden’s rule.

        • 0 avatar
          FreedMike

          “When you campaign (well then 2-3 events Xiden had when he wasn’t in the basement) on ending fossil fuel use, doing everything in his power to impede the progress of the entire fossil fuel industry, it’s pretty understandable how prices began to rapidly increase on day one of Xiden’s rule.”

          So…it has nothing to do with actual supply and demand, but because Biden’s a bogeyman. Good to know.

          • 0 avatar
            Art Vandelay

            It’s because oil is traded based on what it will cost in the future and Biden was openly hostile to the industry, hence people got the crazy idea that it may be more expensive to produce gasoline in the future. Combine that with a lot of talk and not much else on whatever is next and this was predictable (and predicted by anyone with a brain). That is why, as Cavuto pointed out yesterday prices were already up over a dollar before Russia put anyone on Ukraine’s border.

          • 0 avatar
            FreedMike

            So in other words, it’s based on feelings, not facts. There’s another word for that: irrationality.

          • 0 avatar
            Art Vandelay

            That’s the system globally and no politician has put forth anything to change it and all Joe has done is gripe. Stuff costs what it costs. If you are priced out of the game too bad. Maybe think in future elections. Your feelings on the system’s validity are less meaningful and there are no plans to change it.

          • 0 avatar
            FreedMike

            You assume I’m priced out of the game. I’m not…far from it. But since, as you say, the petroleum industry is raising prices because of their bAd fEeElZ for Biden, and those prices are driving the cost of EVERYTHING up, then the bottom line is this: they’re f**king with my wallet – and my country – for no rational reason.

          • 0 avatar
            Art Vandelay

            Nonsense. Producing fuel is a long term process. They have to plan for the future and price accordingly. It isn’t “feelz”…the President and the party in charge of both houses have announced their intent to make it far more difficult for them to operate in the future. The current prices support the future costs…like Social Security only as it is not refilled by taxpayers they have to operate at a profit.

            You can not like this and want another option, but the candidate you support has done absolutely nothing to move in that direction besides get in p!$$ing contests with the largest producer of EV’s who operates the only charging network that approaches being practical.

            You voted for this. Sorry you aren’t a fan of the predictable and predicted result.

          • 0 avatar
            EBFlex

            “But since, as you say, the petroleum industry is raising prices because of their bAd fEeElZ for Biden, and those prices are driving the cost of EVERYTHING up, then the bottom line is this: they’re f**king with my wallet – and my country – for no rational reason.”

            So when this absolute embarrassment of a “man” campaigned and said things like:

            “Pres. Biden – No more subsidies for the fossil fuel industry, no more drilling on federal lands, no more drilling, including offshore, no ability for the industry to continue to drill. It ends”

            “Would there be any place for fossil fuels, including coal and fracking, in a Biden Administration?” CNN’s Dana Bash asked during a primary debate in July 2019. “No,” Biden flatly answered. “We would work it out; we would make sure it’s eliminated and no more subsidies for either of those. No more fossil fuels.”

            ““What about, say, stopping fracking and stopping pipelines and…” a supporter in Iowa started to ask him a few days before the Iowa Caucuses. “Yes, yes, no pipelines, exactly,” Biden jumped in before she could even finish her question.”

            ““No more subsidies for the fossil fuel industry, no more drilling on federal lands, no more drilling, including offshore, no ability for the industry to continue to drill,” he declared. “It ends.””

            The oil companies were just supposed to ignore that and write it off as the ramblings of an old man? That’s what you are saying.

            But, good for you for being a good little propagandist for the administration. Yesterday Xiden talked about the “feelings” of the oil companies after receiving a very reasonable response and here you are spreading the same $h!t.

    • 0 avatar
      Number6

      Do you mean like murdering an elected prime minister and backfilling him with an oil friendly dictator? That snarky point shows what I’m getting at- how much of the DoD budget is spent keeping cheap oil prices? The government has been controlling oil prices for decades. Only now it’s a problem?

      • 0 avatar
        Lou_BC

        @Number6 – that would never happen… cough…hack…1953 Mohammad Mossadegh Iran.

        Coups or attempted coups backed by USA

        China 1949 to early 1960s
        Albania 1949-53
        East Germany 1950s
        Iran 1953 *
        Guatemala 1954 *
        Costa Rica mid-1950s
        Syria 1956-7
        Egypt 1957
        Indonesia 1957-8
        British Guiana 1953-64 *
        Iraq 1963 *
        North Vietnam 1945-73
        Cambodia 1955-70 *
        Laos 1958 *, 1959 *, 1960 *
        Ecuador 1960-63 *
        Congo 1960 *
        France 1965
        Brazil 1962-64 *
        Dominican Republic 1963 *
        Cuba 1959 to present
        Bolivia 1964 *
        Indonesia 1965 *
        Ghana 1966 *
        Chile 1964-73 *
        Greece 1967 *
        Costa Rica 1970-71
        Bolivia 1971 *
        Australia 1973-75 *
        Angola 1975, 1980s
        Zaire 1975
        Portugal 1974-76 *
        Jamaica 1976-80 *
        Seychelles 1979-81
        Chad 1981-82 *
        Grenada 1983 *
        South Yemen 1982-84
        Suriname 1982-84
        Fiji 1987 *
        Libya 1980s
        Nicaragua 1981-90 *
        Panama 1989 *
        Bulgaria 1990 *
        Albania 1991 *
        Iraq 1991
        Afghanistan 1980s *
        Somalia 1993
        Yugoslavia 1999-2000 *
        Ecuador 2000 *
        Afghanistan 2001 *
        Venezuela 2002 *
        Iraq 2003 *
        Haiti 2004 *
        Somalia 2007 to present
        Honduras 2009 *
        Libya 2011 *
        Syria 2012
        Ukraine 2014 *

      • 0 avatar
        stuki

        “how much of the DoD budget is spent keeping cheap oil prices?”

        None. At least in reality. Who knows: They may perhaps be trying. But we’re talking the US government at the soaring peak of the DumbAge here: They are, categorically, flat out incapable of doing anything of value whatsoever. Try or not, it makes no difference.

    • 0 avatar
      stuki

      “Do we really want the government controlling…”
      No.

      As well: “Do we really want the government…”
      Also No.

      The monkeys would best be left to fall down airplane steps on their own dime. Leaving those of us higher up the evolutionary ladder alone.

  • avatar
    ravenuer

    So we’ll save, maybe a few pennies per gallon, but then we won’t be able to drive on our highways (at least in NY) because of the giant potholes.

  • avatar
    bullnuke

    Another knee-jerk “Do Something!” publicity stunt similar to the removal of a few barrels of oil from the Strategic Petroleum Reserve a couple months ago. Typical for politicians of all stripes. Similar “Do Something!”s have been done for all the years that I’ve been alive. Minimal (if any) effect on the current “crisis” and usually accompanied by negative consequences down the road (sometime after the next election).

    • 0 avatar
      FreedMike

      “Similar “Do Something!”s have been done for all the years that I’ve been alive.”

      Yeah, like invading Iraq over 9/11. The good news is that nothing’s going to get blown up if the federal gas tax gets suspended temporarily.

      • 0 avatar
        Art Vandelay

        The money for Iraq is a drop in the bucket compared to what has been spent on “the war on Covid”. Then again, adjusted for inflation that has surpassed WWII. Besides, gas prices are high “Because Ukraine”, right? So it would seem plenty is getting blown up.

  • avatar
    dal20402

    This is stupid, craven demagoguery. First, it won’t work, because the final price is a factor of low supply of refined gas. Second, it’s totally at odds with two separate other stated commitments of the administration: (1) to accelerate the deployment of climate-friendly fuels and (2) to fully fund highway maintenance.

    I’m disappointed in the president and the administration over it.

    • 0 avatar
      FreedMike

      Thing is, though, the amount of refined gasoline is actually INCREASING. We’re almost at pre-pandemic levels of supply.

      https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WGFRPUS2&f=W

      The run up in prices bears very little relation to supply and demand.

      • 0 avatar
        dal20402

        “We’re almost at pre-pandemic levels of supply.” Meanwhile, we’re above pre-pandemic levels of driving, and rising.

        “The run up in prices bears very little relation to supply and demand.”

        I don’t think the evidence supports that assertion. But if it is true, then why has the increase stuck? Is there massive multi-party collusion that needs intervention from trust-busters?

        • 0 avatar
          FreedMike

          “Meanwhile, we’re above pre-pandemic levels of driving, and rising.”

          According to this, from the St. Louis Fed, in April we were basically AT pre-pandemic levels in terms of miles driven.

          https://fred.stlouisfed.org/series/M12MTVUSM227NFWA

          Do you have a different source?

          Logically, for the supply/demand concept to adequately explain a doubling of prices, there must be some kind of severe shortage, or some dramatic uptick in demand, or a combination thereof. I haven’t seen any data to support that.

          I think the increase is simply explained: the petroleum industry has the power to control prices, and that’s exactly what they’re doing. There isn’t much the government – ANY government, not just ours – can do to stop it.

          The only real solutions I see are a) more regulation (and good luck getting THAT passed with all the palm-greasing the petroleum industry does), or b) develop competitive alternatives to petroleum.

          • 0 avatar
            dal20402

            I was looking here, comparing with 2019: https://www.fhwa.dot.gov/policyinformation/travel_monitoring/22febtvt/figure3.cfm

            But in either case I think the picture is that we have high and rising demand along with restricted supply. In an inelastic market it doesn’t take much supply disruption for prices to skyrocket. And I think that’s what’s happening right now.

            “the petroleum industry has the power to control prices, and that’s exactly what they’re doing.”

            “The petroleum industry” is a lot of different companies and governments from a lot of different parts of the world. I feel like you’re implying really massive collusion, along the level where it would be a political slam-dunk for executive branches in both the US and Europe to take robust antitrust enforcement actions. The fact that they haven’t suggests to me that we aren’t looking at massive collusion, but real, supply-driven leverage against consumers.

          • 0 avatar
            JMII

            “I think the increase is simply explained: the petroleum industry has the power to control prices, and that’s exactly what they’re doing. There isn’t much the government – ANY government, not just ours – can do to stop it.”

            +1 this is how the world really works.

          • 0 avatar
            FreedMike

            @dal:

            By my read of that graph, miles traveled in February 2022 are actually 2.7% *lower* than February 2020. Meanwhile, gas supply in February 2022 was 5.2% lower than it was in February 2020.

            Based on that, there was a minor supply/demand imbalance, so a fluctuation in price makes sense. But what we had was a 42% spike. A 42% increase in the price of anything indicates a major supply or demand disruption happened, when in actuality, all we had was a fairly minor fluctuation in supply.

            The supply/demand numbers just don’t make much sense, which tells me that the real reason for the huge run-up in prices has nothing to do with supply/demand numbers.

          • 0 avatar
            Art Vandelay

            “Logically, for the supply/demand concept to adequately explain a doubling of prices, there must be some kind of severe shortage, or some dramatic uptick in demand, or a combination thereof. I haven’t seen any data to support that.”

            Again, prices are based on future projections. Maybe if those companies didn’t think our leadership had us on the precipice of WWIII and hadnt spent a year lurching from crisis to crisis and mismanaging all of them their outlook on the future would be less bleak. It’s a golden opportunity to speed the transition to renewables though, right?

    • 0 avatar
      EBFlex

      “ I’m disappointed in the president and the administration over it.”

      Deplorable.

  • avatar
    FreedMike

    This gas tax holiday is a non-solution. But there is a real solution here, and it’s to generate some competition in the energy-supply system for transportation. Right now, it’s all based on petroleum, which makes the petroleum industry able to basically pry open our wallets whenever they want. This isn’t the first time it’s happened, and as long as the system is all-petroleum, all the time, it won’t be the last.

    Forget the environmental aspects of things like EVs and alternative energy, and all the associated infrastructure upgrades – all that stuff will mean competition, and that will lessen the petroleum industry’s ability to run this game.

    The ball’s in our court. We can either continue being abused like this, or we can do something about it.

    • 0 avatar
      Jeff S

      Agree that we need alternatives the only thing is that once alternatives start to get developed the price of oil will go down and thus the alternatives will become less viable. In the long run alternatives would be the better choice but the problem is many do not plan for the long run. The best solution for now is to drive less, slow down, maintain your vehicle properly especially tire pressure, and when you decide to replace a vehicle get what you need and no more and get a more efficient vehicle. The only problem with a gas tax holiday is that the price of gasoline and diesel goes up more than what the tax is thus negating any savings to consumers and it is taking away funds from the highway fund. Again blaming Biden for the rising fuel prices does not get to the real issue which is a global issue of rising fuel prices and inflation on other goods due to supply issues. Reducing demand for fuel will at least stabilize prices and eventually prices will go down but I doubt we will ever see cheap gas or diesel again. Much of the increase in production of oil was due to fracking and most of the fracking was done by independent companies which took the biggest hit when demand went down in 2020 due to the Pandemic and put many of them out of business and those that were not put out of business many of those got acquired by the major oil companies. Less risk for a major oil company to buy out the competition and to buy their own stock back. A lot of risk and cost to develop new oil fields and stockholders of these companies want larger dividends and high earnings per share which is not only true of oil but of any large publicly held corporation. Working in the oil business for years it is not as simple as turning a spigot on and increasing the flow of oil.

      • 0 avatar
        FreedMike

        @Jeff:

        I agree, reducing demand is one way to fix this, but that doesn’t happen overnight either.

        And based on what you’re saying about the oil industry, the run up in prices here isn’t due to some major fracture in the supply/demand chain, but rather a restructuring of the oil industry itself. That’s all well and good, but they’re financing their restructuring on our backs. That’s not all well and good.

        • 0 avatar
          Art Vandelay

          Yawn. From the party that wants to put people’s inability to read the contract for their student loan on all of our backs.

        • 0 avatar
          Jeff S

          @FreedMike–True it will not happen overnight remember that gas and diesel prices are quick to rise and slow to come down. Biden might have had some effect on oil prices early on but most of that would be small because this is global. Oil industry plans for the long run in that political parties and Presidents change. There is no major fracture in the supply/demand chain and the oil industry has been restructuring itself over the last 30 or more years by reducing number of refineries and production of oil but it hasn’t been as noticeable until now when prices for oil have skyrocketed. Yes the oil business is restructuring itself with our dollars but then most businesses do that. The auto industry is doing that as well and using additional revenue to develop new EVs. Even if Trump were to get re-elected in 2024 industry is not going to plan just for the next 4 years and that is why many auto companies were not that anxious to go along with Trump’s reduction in fleet efficiency because long term they know that they will have to comply with the higher standards and globally they have to do that regardless of what the US does. These corporations are global. If Europe and China have mandates to go to all EVs in 2030 or 2035 then they will prepare to make all EVs especially since they anticipate that the US will have stricter standards as well. Oil is not going to disappear anytime soon but as EVs become more common the demand will go down for gasoline and diesel. The oil companies will eventually have to transition to supply other energy besides gasoline, diesel, heating oil, and lubricants.

  • avatar
    SCE to AUX

    Imagine the blowback when the 3-month hiatus expires, and prices suddenly jump 18.4 cents.

  • avatar
    EBFlex

    We were assured in these very comments section that Xiden has no ability to lower gas prices. Interesting article…

    But this is yet another “head up the butt” decision by the installed Xiden administration. All this will do is increase inflation. It’s a pat on the head to a child that just broke their femur. Political pandering at its best.

    Even Obama called this type of crap a gimmick in 2008.

    • 0 avatar
      Matt Posky

      I’m inclined to agree on the inflation angle. There’s also no assurance that companies don’t just say “thanks for the tax break” and fail to pass on any savings to the consumer.

      In my estimation, calling this a gimmick seems extremely kind. I’m all too happy to gripe about the government wasting money but at least you get to see the end result in terms of bridges and roads.

      • 0 avatar
        EBFlex

        “In my estimation, calling this a gimmick seems extremely kind.”

        Well like Xiden said, Obama is the “first mainstream African-American who is articulate and bright and clean and a nice-looking guy,”

        So yes, Mr. Articulate would have used an extremely kind phrase.

        I agree with you, this is far worse. This is nothing more than a weak attempt to gain votes in November because they know it’s going to be a brutal blood bath. but having it end after three months? More Xiden stupidity.

      • 0 avatar
        Jeff S

        @Matt–The price of gas and diesel will go up anyway until demand falls off and taking 18 to 21 cents a gallon tax will do little to help most drivers. Summer is peak driving season and prices for fuel will go up and then when Summer is over prices will go down then stabilize but I would not count on gas and diesel being cheap again.

    • 0 avatar
      la834

      This is the biggest gimmick since “cash for clunkers”. I agree that consumers aren’t likely to see anything like an 18 cent per gallon price decrease.

      • 0 avatar
        stuki

        “consumers aren’t likely to see anything like an 18 cent per gallon price decrease.”

        Of course they won’t. If there were any chance they would, Biden would still be utterly oblivious to how much other people had to pay to keep his motorcade rolling. It’s not the “consumer” lobby which keeps the trashbuckets flush in hookers, blow and campaign funds.

    • 0 avatar
      jkross22

      EB, he sure did. He said this….

      “I am offering a thousand dollars for working families to deal with rising healthcare costs and gas prices costs…. But to suggest that .30/day for 3 months is real relief, that that’s a real energy policy, means we’re not tackling the problem that needs to be tackled.”

  • avatar
    Art Vandelay

    No way. Roads cost money. They don’t magically not cost money because gas is expensive. Suck it up buttercup and if you can’t swing driving in these conditions then get your kiester on that bus. Pay your fair share and in the future maybe think about how energy policy effects you and demand questions be asked about it in debates rater than having the same debate 3 times about covid. Why should you get out of paying to maintain the roads you are driving on though?

    Having said that, this is a handout to the oil companies which we know people like Biden dislike, right? Gas will come down a few cents and creep back up while they pocket that 18 cents.

    Just pay your darned taxes

    • 0 avatar
      EBFlex

      “ Just pay your darned taxes”

      …so it can be sent to piles of rubble like Ukraine.

      • 0 avatar
        Jeff S

        Gas taxes go for roads and bridges and are not part of the overall Government budget so no gas taxes go to Ukraine they go to the very roads and bridges you drive on.

        Federal taxes help fund 84.5% of the nation’s highways, 15% goes to mass transit and .5% goes to leak cleanup and maintenance for the tanks underneath gas stations.

        https://www.newsnationnow.com/business/your-money/what-does-the-federal-gas-tax-pay-for/

        • 0 avatar
          EBFlex

          I figured you would miss the point.

          We sent $40 billion to Ukraine. Had we kept that here, this “tax holiday” could have been supplemented by some of that money. Or, use some of that money to subsidize diesel costs so the cost of moving goods across the country doesn’t sky rocket and don’t suspend the gasoline tax.

          Ultimately, that $40 billion should not have left our shores.

          But, why not send our tax dollars to a hole in the ground? Why help to secure our border when we can secure the Ukraine border instead?

          This installed administration is the absolute worst of all time. Inflation is through the roof, many other major issues are facing this country and what are they doing? worrying about putting a female’s signature on our currency. What frauds.

          • 0 avatar
            la834

            If inflation was going through the roof in the U.S. but prices were stagnant in Canada and Europe and Asia, we could blame Biden and have a good case. But inflation is going through the roof all over the world. Or is Biden responsible for Germany and Japan and Australia now too?

          • 0 avatar
            Jeff S

            No your point was the gas tax goes to Ukraine which it does not. You missed the entire point of the article which was the suspension of the gas tax not aide to Ukraine. The discussion is about suspension of the federal gas taxes which funds roads and bridges you managed to twist this into a discussion about aide to Ukraine which is not related to cars and completely off topic.

          • 0 avatar
            Jeff S

            @la834–EB is less interested in facts and more interested in parroting what he has heard on Fox News. This is global and all countries are affected by inflation. EB has come on a car site to rant.

          • 0 avatar
            Art Vandelay

            All of you…quit trying to mooch and pay your gas taxes. If gas is too expensive then personal vehicle ownership isn’t for you. Enjoy your bus ride

          • 0 avatar
            EBFlex

            “ If inflation was going through the roof in the U.S. but prices were stagnant in Canada and Europe and Asia, we could blame Biden and have a good case”

            Germany, Canada, and France are just a few of the countries that have lower inflation than the US. So, yes, it’s prudent to blame the “leader” for this. He may not be able to influence all of it but he’s certainly not doing anything to help it. All he does is make it worse.

            “ No your point was the gas tax goes to Ukraine which it does not.”

            Like I said you completely missed the point. Certainly not surprised though. But go on and twist my words. I won’t stop you.

            “ EB is less interested in facts and more interested in parroting what he has heard on Fox News”

            Wrong yet again. Don’t watch Fox as I don’t have cable or satellite TV. Try again kiddo.

  • avatar

    Spending time talking to oil company CEOs will be as effective as talking to a wall. They will not feel bad or cut their profits because they were asked to.

    • 0 avatar
      Jeff S

      Corey–Oil companies are global and publicly traded and are answerable to the stockholders and their Board so unless they are asking for something from the Government then they are not going to do anything unless forced to. I doubt Congress will pass any regulatory measures like a Windfall Profit Tax there would not be enough votes to pass and it is an election year and many incumbents are dependent on campaign contributions especially from Big Oil. Also inflation and an economic crisis benefits the party not in power giving Republicans little reason before an election to help Democrats. Doubt Congress will go along with a temporary suspension of the fuel tax.

      • 0 avatar
        FreedMike

        “Also inflation and an economic crisis benefits the party not in power giving Republicans little reason before an election to help Democrats. Doubt Congress will go along with a temporary suspension of the fuel tax.”

        Jeff said the quiet part right out loud.

        • 0 avatar
          Art Vandelay

          Yeah, because we all know if the shoe was on the other foot it wouldn’tgo exactly the same

          • 0 avatar
            Jeff S

            @Art–Both parties play politics especially during an election year but it benefits Republicans more to not do anything because they have a greater chance to take both the Congress and Senate. Inflation and an economy that could tank benefits the party not in power.

      • 0 avatar
        285exp

        The Democrats were happy to shut down our economy in 2020 if that’s what it took to get rid of the Bad Orange Man, just like they were happy to encourage rioting, at least until after the election.

        Tapping the strategic oil reserve was stupid and had a minimal effect on fuel prices, and the fuel tax holiday is stupid and will have a minimal effect on fuel prices. At least they’re consistent.

        • 0 avatar
          FreedMike

          Uh, no, Trump was the one who shut down the economy. He’s also the one who started the stimulus giveaways that folks like you are now blaming for inflation.

          And as far as encouraging riots is concerned…maybe you should back away from that one very slowly.

          • 0 avatar
            285exp

            You’re full of it Mike, as usual. Trump didn’t want to shut down the economy, and he was vilified for it, it was the Democrats and their lapdog Fauci, who has lied about pretty much everything. Masks? Nope, masks won’t protect you. Never mind, now if you don’t wear a mask you’ll kill granny. We never funded gain of function research in China, well maybe we did. Covid came from a wet market that just happened to be down the street from the Wuhan Institute of Virology, well. That hasn’t aged to well either. No, he said we were going to get locked down for 2 weeks to flatten the curve, but it turned out to be 2 years.

            And no, I’m not backing away from the rioting issue an inch. Kamala Harris told the rioters that they shouldn’t stop, and contributed to a fund the bail out the ones who were arrested. Pelosi was all too happy to encourage the rioting as long as it served her purposes, as did Biden. Trump was wrong to refuse to accept his defeat, they stole it fair and square. He acted disgracefully, and if he had behaved honorably he would be a shoe in for election in 2024. The idiots who rioted in DC were stupid enough to believe that they’d be treated no differently than the rioters who did billions of dollars of damage in multiple cities, mostly Democrat governed, including setting a church on fire in DC. Remember those old anti-drug ads, where the dad had caught his son with a bag of weed, and asked where he learned to smoke pot? The kid said, from you dad, I learned it from you. Maybe if you don’t want people to think that rioting is a good way to resolve their political grievances, you don’t encourage it when it suits your purposes.

          • 0 avatar
            Jeff S

            @FreedMike–True Trump did start the stimulus not so much to help people out but because it was an election year. As for the economy shutting down for the most part that happened globally because of Covid-19. When millions of people die from a pandemic it causes an economy to shut down and blaming the party in charge will not solve anything. Many seem to forget or don’t believe Covid-19 was real but it happened and not everything that happens is a Government conspiracy. Easier to point a finger and blame others than to take responsibility. I am not for any leader regardless of their political affiliation that encourages supporters to storm the Capitol and take over the Government. We as a country have been around for over 200 years and I don’t want to see us become a banana republic in that every time we have an election it is challenged and followers are encouraged to riot and overthrow the Government. Don’t want a leader who admires other dictators and wants to be in office for life. Getting too old to become a refugee and having to flee to another country. As imperfect a country as we have I will take it over having a strong man who leads with an iron fist and having to worry about what freedoms I might lose.

          • 0 avatar
            EBFlex

            “Uh, no, Trump was the one who shut down the economy.”

            You gotta lie better than that bud. I know an elitist like yourself thinks us lonely peasants are dumb and uninformed, but to assert that President Trump shut down the economy is laughable.

            https://www.cnbc.com/2020/08/03/trump-says-nationwide-lockdown-would-ultimately-inflict-more-harm-than-it-would-prevent.html

            JeffS: “Many seem to forget or don’t believe Covid-19 was real ”

            That is flatly untrue

  • avatar
    TheEndlessEnigma

    Of course, if Dementia Joe were actually serious about fuel prices he would allow pipelines to be built, drilling leases in areas with actual proven reserves to be sold and drilling expand, remove burdensome regulation from the refining industry (regulation designed to throttle refining) and remove the bureaucratic road blocks that have prevented any new refineries since 1975.

    But then those actions would actually mean something and have REAL impacts, so Dementia Joe, and his handlers, won’t make these meaningful moves.

    • 0 avatar
      SCE to AUX

      If you’re suggesting there is an oil shortage, there isn’t.

    • 0 avatar
      ttacgreg

      Your dementia Joe derogatory name calling is invalid and a bit childish. Biden’s public statements are way more rational than Mr. trumps and if you want me to I will dig into my records I have a collection of utterly demented, damn near meaningless in print quotes of Mr. Trump. Sometimes he stumbles in gas a bit well yeah he’s almost 80 at my age of 70 that’s happening to me just a little bit, it’s normal.

      • 0 avatar
        EBFlex

        “Your dementia Joe derogatory name calling is invalid and a bit childish.”

        No. It’s not. He is riddled with Alzheimer’s and has no place running a country. He can’t even ride a bike.

        I had a relative with Alzheimer’s and watched him decline from an automotive engineer who was the chief engineer of an engine that impacts your life every single day to an infant. The parallels between him and Xiden are astoundingly similar.

        Your TDS is strong though if you have a collection of mean things President Trump said.

      • 0 avatar
        Jeff S

        @ttacgreg–Both Biden and Trump are old and it would be better to have a much younger President. Agree Biden’s statements are much more rational and he doesn’t go on about how he is buddies with Putin and he wants to be President for life. Would like to see someone who is between 45 and 55 and who is not an extremist either left of right as President. Encouraging your supporters to storm the Capitol and going on about a stolen election with Rudy as your attorney is not someone I want to see back in office.

        • 0 avatar
          EBFlex

          “ Encouraging your supporters to storm the Capitol”

          Yeah that never happened. He literally said people should “peacefully and patriotically” make their voices heard.

          “iT wAs An InSuRrEcTiOn!!!!” Lolololololol. Biggest lie since the Russia hoax.

          • 0 avatar
            Jeff S

            Trump’s words

            “We’re going to walk down to the Capitol, and we’re going to cheer on our brave senators, and congressmen and women,” Trump told his supporters shortly before the Capitol assault. “We’re probably not going to be cheering so much for some of them because you’ll never take back our country with weakness. You have to show strength, and you have to be strong.”

            https://www.poynter.org/fact-checking/2021/a-timeline-of-what-donald-trump-said-before-the-capitol-riot/

            Take back our country sounds more like the words of a despot. Trump lost.

          • 0 avatar
            EBFlex

            Jeff S: “Trump’s words”

            Yeah…here they are

            “I know that everyone here will soon be marching over to the Capitol building to peacefully and patriotically make your voices heard.”

            “iT wAs An InSuRrEcTiOn!!!!” Lolololololol. Biggest lie since the Russia hoax.

      • 0 avatar
        TheEndlessEnigma

        Someone just got triggered…

      • 0 avatar
        Art Vandelay

        During lunch I had YouTube playing 80’s music videos. Genesis’ “Land of Confusion” came on. Yeah, so maybe spare me your moral outrage about how an older President is depicted. Thank Goodness we are past the days of old dudes potentially bumbling us into a Nuclear War with Russia though. Wait… Ah well…wonder if such a video would ever be made about Biden. He’s older after all.

    • 0 avatar
      Jeff S

      The oil companies are not going to build new refineries even if regulations are reduced because they are expensive and where ever they build them they will face opposition “not in my backyard”. Also oil companies see a future with less demand for oil and don’t want to pour too much into building pipelines and exploration into a product that will eventually be replaced albeit it might be decades away for that happening it still requires risk and huge investments. That is one reason why Canadian oil is being exported to the US because the Canadians don’t want additional refineries. Many of the new mega refineries have been built in India and other parts of Asia. Even with less regulation it takes years to build pipelines and new refineries and by the time those come online demand could drop. Oil companies for the most part have been leasing less mineral rights and getting more production out of existing well and this was happening long before Biden became President. Not every lease gets drilled as a matter of fact most leases are never drilled.

  • avatar
    kcflyer

    Biden promised to raise energy prices in his basement campaign. He dumped trillions of dollars (unbacked debt) into the economy during a time of record low supply. This on top of the 3 trillion trump dumped into the economy at the behest of every single politician in DC to ease the damage caused by stupid and selective economic shutdowns. Biden owns most of this mess. Meaning Biden voters own most of this mess. The man shold be in a retirment home. But yeah, no mean tweets. And before Biden voters start defending the 100 percent increase in energy prices in Bidens term can we at least acknowledge the 20 percent inflation of everything? Joe did this, Joe voters did this.

  • avatar
    NJRide

    Interesting point here is that I think real world fleet fuel economy is around 22-23. We still have a lot of 90’s/2000’s cars on the road that were built before the mileage improvements after the ’07/’08 oil shock. Still that is better than the 14.9 mpg in 1980, (when a lot of pre-1974 boats were still on the road). Americans do drive more now, but they also make more in real terms (39k personal income vs. 26k in 1980). But if gas goes nearer to $6 the 1979-80 pain levels return for real even with more efficient cars. (And $5 or near $5 may still have shifted enough consumer spending to cause a recession).

    The tax drop makes sense to temporarily improve government inflation stats, but not much else.

  • avatar
    ttacgreg

    I think a temporary windfall profits tax on petroleum companies that would be applied to roads would be a far better idea but it’s probably too complicated of a concept to get through to the general public’s short attention span mentality. They don’t see any imediate difference at the pump.
    The temporary tax cut is ridiculous and pretty much ineffective pandering.,

    • 0 avatar
      Urlik

      What percentage of profit on sales is considered a windfall to you?

      • 0 avatar
        EBFlex

        Weird. Absolute crickets as he doesn’t have an answer.

        • 0 avatar
          ttacgreg

          I can’t cough up a figure but I could propose a process. Do some statistical studies crunch some data and decide reasonable rate. Don’t lose sight of it being temporary.

          • 0 avatar
            jkross22

            That’ll get ’em! Cap their profits until they do what? Drill more, build more refineries, etc?

            Central planning always sounds good until it becomes clear that the people calling the shots have their heads in a dark, warm place they like to call home.

          • 0 avatar
            Jeff S

            That is what happened in 1973 after the Arab Oil Embargo a Windfall Profits Tax was passed and yes Congress did not just draw a number out of the hat they actually studied data and voted on a reasonable rate. The point of the Windfall Tax was not punishment but more to put all oil companies on an even footing and to stabilize oil prices.

        • 0 avatar
          ttacgreg

          Here is your “absolute crickets” you silly (assuming your gender) man.
          It’s so happens I haven’t visited the site in 24 hours. Jumping to conclusions much?

          • 0 avatar
            Art Vandelay

            Apple and big tech are going to get hammered since they have far higher margins than the energy sector. Or is it only some profits that are bad?

  • avatar
    ttacgreg

    Okay, let’s have some fun here. I’m gonna set some people’s hair on this forum and mention :-0 Nancy Pelosi (YIKES! ANGER! HATRED! ) I just surfed over to the Hill and there’s an article headlined, Pelosi declines to endorse gas tax holiday”

    In the article is this quote , which sums up my thinking quite well. “The challenge on the gas tax is: Is the savings really going to flow to the consumer? Or is it going to be pocketed by the oil companies?” said Rep. Richard Neal (D-Mass.), chairman of the House Ways and Means Committee. “Those are legitimate questions.”

    Seriously I can’t think of one thing that government can do that can immediately reduce price at the pumps. It is a fool’s errand.

    • 0 avatar
      EBFlex

      “Seriously I can’t think of one thing that government can do that can immediately reduce price at the pumps. It is a fool’s errand.”

      Did you watch and listen to Xiden when he came out of his basement a few times to campaign? Lets dig up what Dementia Joe said:

      “During a campaign stop in New Hampshire on Sept. 6, 2019, Biden sought to reassure a climate activist of his commitment to ending fossil fuels. After stating unequivocally that he would not ban fracking, Biden told the activist: “But, kiddo, I want you to just take a look, OK? You don’t have to agree, but I want you to look in my eyes. I guarantee you, I guarantee you we are going to end fossil fuel and I am not going to cooperate with them, OK?”

      It should be noted he did not sniff the hair of the teenage female that asked the question.

      “Pres. Biden – No more subsidies for the fossil fuel industry, no more drilling on federal lands, no more drilling, including offshore, no ability for the industry to continue to drill. It ends”

      “Would there be any place for fossil fuels, including coal and fracking, in a Biden Administration?” CNN’s Dana Bash asked during a primary debate in July 2019. “No,” Biden flatly answered. “We would work it out; we would make sure it’s eliminated and no more subsidies for either of those. No more fossil fuels.”

      ““What about, say, stopping fracking and stopping pipelines and…” a supporter in Iowa started to ask him a few days before the Iowa Caucuses.
      “Yes, yes, no pipelines, exactly,” Biden jumped in before she could even finish her question.”

      ““No more subsidies for the fossil fuel industry, no more drilling on federal lands, no more drilling, including offshore, no ability for the industry to continue to drill,” he declared. “It ends.””

      But, yes, continue that lie that the president has no power to control fuel prices. I’ll say it again, if this installed administration is going to tout the fact that they lowered the cost of a BBQ by $0.16 cents as irrefutable proof that their economic policies are putting this country on the right path, then I will CONTINUE to hold them responsible for the fuel prices.

      • 0 avatar
        ttacgreg

        Absolutely the government can increase the price of gallon for gas via taxes. I don’t see any short term way the government can reduce said prices. You’re jumping to conclusions and going off on a bash Biden tangent that’s irrelevant to my comment.

        • 0 avatar
          FreedMike

          That’s all they got, Greg…bash Biden. The irony is that they’re perfectly OK to completely f**k our economy up to do it. Real patriots, these guys.

          • 0 avatar
            Art Vandelay

            Yawn. The economy is just fine from my seat. People should make smarter decisions and not wait for more handouts.

          • 0 avatar
            Art Vandelay

            And do tell…how are those on the opposite side of the political aisle and are therefore idiots, as you have expressed over and over again f**king up our economy?

        • 0 avatar
          Jeff S

          @ttacgreg–Agree I do not see any short term solutions for the Government to reduce gas and diesel prices. EBFlex is not interested in a discussion of the article just bashing Biden and parroting the Trump propaganda. I have given a variety of reasons why oil prices are high having worked in the oil and gas industry. Doubt any of us want to pay more for gas and diesel and it is hurting many families who are struggling but ranting and blaming does not change what is happening and will definitely not lower fuel prices. I do believe that once the Summer driving season is over short of a major natural catastrophe or war that oil prices will go down and stabilize but I doubt we will see cheap fuel. Fuel tax holidays is a temporary solution at best but more likely the fuel prices will go up at least by the amount of tax suspended and probably more.

  • avatar

    Why you all resort so fast to blaming current administration. Isn’t Putin who actually manipulates the gas price and financial system of USA via his lapdog Donnie Drump?

  • avatar
    ToolGuy

    “American drivers are starting to buy less gasoline as they feel the economic burden of record prices that continue to hover near $5 a gallon.

    “In the first full week of June, gasoline sales at U.S. stations were down about 8.2% compared with the same week last year—the 14th consecutive week that sales have lagged behind 2021 levels, according to surveys by energy-data provider OPIS.”

    https://www.wsj.com/articles/high-gas-prices-hit-demand-as-drivers-cut-back-at-the-pump-11655890381

  • avatar
    ajla

    Ordered a Hellcat in response.

  • avatar
    pmirp1

    Branden moves to reduce gas prices:
    1. Take oil and release from strategic petroleum reserves
    2. Give a tax holiday to save 15 cents for a few months
    3.Go to Saudi Arabia and beg for a little more crude, after calling their leader names.

    Here is what will work.

    Say it is a different world and we have to
    1. Explore for oil and gas inside America. Drill and Frack everywhere.
    2. Build new refineries
    3. Support pipelines
    4. Move away from green policies

    Alas, he is not sharp enough to figure out what is needed, or he is to gutless. His days and Democrats are numbered as oil keeps going higher and higher and inflation and recession bring about stagflation. But hey at least he doesn’t put out mean tweets.

  • avatar
    cimarron typeR

    My brother in law works for a private railroad magnate of sorts, as his odd jobs manager, and got access to a railyard in KC area which currently is housing millions of dollars of XL Pipeline fittings/pumps, all of which are custom made and now useless.
    E.g., a German made diesel powered pump that costs 300k each, and sold for 10k to foreign companies.
    And there are several rail yards along this route with XL parts offloaded as depots.
    Silly, just silly.

  • avatar
    MrIcky

    My recollection on gas prices appears to be different than the author’s and some of what I’ve seen here.

    * oil crashed due to covid restrictions.
    * oil companies started reshuffling, closing, storing, doing all those things they due to stop the crashing oil price.
    * the world started to come back online and people started going to work.
    * oil companies did not respond by bringing production back to where it was. IIRC they said they were reasonably concerned about a second shutdown- or they were just capitalizing on it.
    * now pent up demand for travel and shipping has driven up ‘intended use’ higher than pre covid but production is still lagging.
    * meanwhile a war was started by one of the top producers of oil and natural gas in the world against one of the top producers of food…

    Timing is everything, and I think that the democrat base thinks rising oil costs is the best thing that ever happened- they just can’t say it out loud. But, it still doesn’t seem Biden had much control over this particular situation. And the outright hostility was expected to result in higher fuel taxes, not the current marketeering.

    • 0 avatar
      Jeff S

      Not all the Democratic base is for rising fuel prices just the extreme environmentalists. Over the long run oil companies will reduce production and once a refinery is closed it is usually not replaced especially in the US. Oil production will go up temporarily but long term oil will diversify into other energy and businesses.

      • 0 avatar
        Art Vandelay

        Too bad. Most Republicans weren’t in the Capital on January 6th but you still paint them all with the same broad brush chump so yeah…your party is for raising gas prices. The shoe fits so wear it you fncking cheese d!cks.

        • 0 avatar
          Jeff S

          I belong to neither party my loyalty is to my country not to a political party. Rising gas prices hurts everyone except the rich who can afford it. People are people and do not go around wearing a badge that states their political loyalties but that could happen if we become a dictatorship similar to what Hitler did with the Jews. I would much rather have the freedom to vote than have mob rule. I cannot relate to Neo-Nazis, Klu Klux Klan, Proud Boys, and the many other fringe groups that the Republican Party is embracing now in order to win elections. I was a Republican until the crazies took over and the party itself embraced them with open arms.

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