Biden discusses gas tax pause 1:00
Washington (CNN) --
President Joe Biden will ask Congress in a speech Wednesday to suspend federal taxes on gasoline and diesel through the end of September, senior administration officials said, framing the move as necessary to provide relief. to American consumers, but by itself it is not enough to solve the problem of rising energy prices.
Biden will also ask states to take steps to eliminate their own taxes on gasoline and diesel.
And he will ask oil refining companies to increase their capacity ahead of their scheduled meeting this week with administration officials.
Taken together, according to senior administration officials, the measures Biden will call for could lower the price of a gallon of gasoline by a dollar.
That number, however, depends on a number of measures that are entirely outside the president's control, and the officials said Biden would not "speak of it as a precise number" but rather use it as an example of what he is proposing. they could achieve.
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"Having the federal gas tax alone won't fix the problem, but it will give families a little breathing space as we continue to work to lower prices for the long term," a senior administration official told reporters.
Even some Democrats have questioned the possibility of suspending the gas tax, pointing out that this tax is a major source of funding for highway construction.
Officials said Biden would ask for the use of other sources of revenue to make up the shortfall.
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Some economists also say the savings passed on to consumers could be minimal, as retailers would simply raise the base price of gasoline to make up the difference.
The senior administration official acknowledged that criticism, saying Biden "is absolutely asking businesses to make sure those savings are passed on to consumers."
But the official acknowledged that simply suspending the tax "is not going to solve the whole problem."
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"It's something that can be done to take a real step to alleviate some of that pain at the pump, and we see it as part of a set of policies that are designed to provide that relief, including policies that focus on the offer," the official said.
But even in this case, it seems difficult to act quickly.
Gasoline refining capacity that was cut during the covid-19 pandemic would take months to come back online, and refineries are now running at nearly 90% capacity.
"We're certainly approaching it in a constructive, actionable and pragmatic way. I think the American people would want their leaders to do that," said a second senior administration official, pointing to Thursday's meeting with seven top executives and Energy Secretary Jennifer Granholm.
GasolineJoe Biden
