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Biden calls for fuel tax suspension – media

US president wants federal gas tax lifted for three months

US President Joe Biden has urged Congress to suspend the federal tax on gasoline and diesel fuel, in the latest attempt to curb soaring prices at the pump, Reuters reported on Wednesday, citing an unnamed official.

According to the source, Biden wants Congress to pass legislation creating a federal tax holiday for a period of three months.

Biden also reportedly called on states to suspend their respective fuel taxes, which often exceed federal taxes, and plans to ask major US oil companies to increase refining capacity.

According to Reuters, Biden and his advisers have been discussing the fuel tax exemption for several months.

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However, this step would require congressional approval, which has some analysts doubting its implementation. Reports suggest Republicans and Democrats in Congress are skeptical of the fuel tax suspension, doubting it will be enough to help bring prices under control.

Currently, the US federal gasoline tax is 18.4 cents per gallon (18.4c per 3.8 liters), while the diesel tax is 24.4 cents per gallon.

Fuel prices in the country began to rise in late winter amid soaring global oil prices. According to the American Automobile Association (AAA), which tracks prices at more than 60,000 gas stations across the country, the average cost of gas in the United States on Wednesday was $4.955 a gallon, more than double the price of January 2021, when Biden takes his place. In California, fuel prices are now at $6.371 per gallon.

For more stories on economics and finance, visit RT’s business section