The new date is Jun 22, 2022.

President Joe Biden proposed Wednesday a federal gas tax holiday, as gas prices hover around record highs nationally, in a move that would instantly provide some relief to consumers.

Election 2022 Biden

The man is in Pittsburgh.


The three-month federal gas tax holiday was called on by Biden.

It would make gas and diesel cheaper.

The national average price per gallon of gas is $4.955 Wednesday, a slight drop from its peak of $5.016 last Tuesday but still a sharp increase from a year ago, when it was $3.069 average.

Despite the holiday likely providing some quick relief at the pump, it may contribute to further inflation by providing an indirectStimulus to consumers, according to Carola Binder.

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$10 billion is a large amount of money. Biden estimated the cost of the holiday to the government. The Highway Trust Fund is funded by the gas tax.

Key Background

During an interview with ABC News, the treasury secretary said that a federal gas holiday is worth considering. The federal gas tax would be suspended for the rest of the year under a bill introduced by two senators. Biden said he might support the holiday. State gas taxes can reach up to 57 cents per gallon, so suspending their own gas taxes would provide further relief at the pump. West Texas Intermediate fell 4.9% to $104.18, its lowest price since June 8, after Biden proposed a holiday. Mark Zandi, chief economist at Moody's, said Tuesday that gas and oil prices have already "peaked."

The gas tax could be suspended by Congress. Speaker of the House Nancy Pelosi (D-Calif.) supports Biden's proposal, but the proposal isn't unanimous among Democrats.

Chief Critic

In an open letter published Tuesday, the CEO of Chevron criticized Biden for trying to vilify the energy industry and bring prices down. Biden said that he wasmildly sensitive over his criticism.

Biden calls on congress to approve a gas tax holiday.

The price of oil will remain elevated through the summer.

The average gas price could keep falling.