"The average U.S. price for regular gas hit $4.52 per gallon Sunday, per AAA, up from just under $3 when the war began. Wright, asked about a gas tax suspension on NBC's "Meet the Press," said "we're open to all ideas" to lower costs for consumers and businesses. But "everything has tradeoffs," he said. Democratic lawmakers and candidates - including Sen. Mark Kelly (D-Ariz.) - have floated legislation to suspend the federal tax."
"Federal tax holiday proposals have surfaced over the decades at times of high prices, but Congress has never enacted one. The gasoline tax and the 24.3-cent diesel tax support the nation's Highway Trust Fund that pays for roads, bridges and other transit. Reality check: A suspension would require an act of Congress, though Trump has frequently used executive orders to act unilaterally."
"The White House has tried several moves to ease the price spike from the throttling of the Strait of Hormuz. The administration has tapped the Strategic Petroleum Reserve and waived the Jones Act to ease fuel shipments at U.S. ports. Yes, but: None of these steps can offset the war's hit to supplies, and U.S. retail gasoline prices are tethered to oil prices set on global markets. Even a full suspension would shave only 10 to 16 cents per gallon, per a Bipartisan Policy Center estimate, meaning Washington has few tools to quickly bring relief from a war-driven price spike of more than $1.50."
"What we're watching: Trump officials are road-testing arguments about energy prices as the midterm elections draw closer. Wright said a nuclear-armed Iran would be a major risk to regional energy supplies while acknowledging the "short-term dislocation" from the war."
U.S. regular gas averaged $4.52 per gallon, rising from just under $3 when the war began. Political pressure is increasing as prices remain high. The White House says it is open to ideas to lower costs, including proposals from Democrats to suspend the federal gasoline tax. A suspension would require Congress and would affect Highway Trust Fund revenue used for roads, bridges, and transit. Past federal tax holiday proposals have not been enacted. The administration has used other measures, including Strategic Petroleum Reserve releases and waiving the Jones Act, but these cannot fully offset war-related supply impacts. Even a full suspension would reduce prices by only about 10 to 16 cents per gallon, while global oil markets largely determine retail prices.
Read at Axios
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