White House and Congress under pressure to support federal gas tax holiday as prices skyrocket

Average price per gallon surges past $4 as DC bans imports of Russian oil

The surging price of gasoline in America is showing no signs of slowing or reversing, and President Joe Biden is facing pressure to take further steps to protect the US energy economy.

Gas prices surged past $4.20 a gallon on average nationwide this week; in California, which has higher local taxes on fuel, the average price is above $5.50 a gallon. And there’s no sign the problem will abate any time soon; quite the opposite, actually, as Mr Biden said in a speech announcing his administration’s ban on Russian oil that prices would likely continue to rise.

That spells serious trouble for American consumers coming on the back of a pandemic-caused economic recession and a serious political problem for Democrats and the White House, who face the prospect of battling to maintain majorities in both houses of Congress amid rising inflation, painful fuel bills, and persistent frustration among some, particularly conservatives, regarding Covid-19 public health measures.

Adding to the pressure faced by the White House on the issue of gas prices are growing calls from both sides of the aisle for more action aimed at reducing the burden on the average American family.

White House press secretary Jen Psaki has faced repeated questioning from Fox News’ Peter Doocy in recent days regarding whether the Biden administration should be pursuing a more aggressive expansion of US oil production and resume new leases of public lands to oil companies; she has countered that thousands of those permits are currently sitting unused by oil firms.

Mr Biden told Americans on Tuesday during his Russian oil ban announcement that he would “do everything I can to minimise Putin’s price hike here at home”. He also warned that there would be some price American consumers paid for resisting Vladimir Putin’s invasion of Ukraine.

On Wednesday, however, it was clear that the president didn’t think “everything I can” meant doing all that much.

“Do you have a message for the American people on gas prices?” a reporter asked the president as he arrived in Texas.

“They’re going to go up,” shot back Mr Biden.

Asked what he was doing in response, the president added: “Can’t do much right now…Russia is responsible.”

The blunt assessment of the White House’s lack of ability to control gas prices is likely to cause conniptions for some Democratic state leaders, who have made clear efforts to lay the responsibility to fight rising gas prices on Congress and the White House.

On Tuesday, Wisconsin Gov Tony Evers joined a growing list of governors officially calling on Congress and the Biden administration to take another step: enacting a federal gas tax holiday, which would cut about 18 cents per gallon from gas prices nationwide.

“Average gas price per gallon in Wisconsin is almost $4 after going up more than 50 cents in a week. I’m urging Congress to suspend the federal gas tax – 18.4 cents per gallon – until 2023 to help bring down gas prices for folks across our state. Wisconsinites can’t wait,” he warned.

BREAKING: Average gas price per gallon in Wisconsin is almost $4 after going up more than 50 cents in a week. I’m urging Congress to suspend the federal gas tax—18.4 cents per gallon—until 2023 to help bring down gas prices for folks across our state. Wisconsinites can’t wait. pic.twitter.com/mN6tsr0ESa

— Governor Tony Evers (@GovEvers) March 8, 2022

Other Democratic governors have joined the effort as well. Michigan’s Gretchen Whitmer, Colorado’s Jared Polis, and New Mexico’s Michelle Lujan Grisham are among a group that have signed a letter to Congress urging action on a federal gas tax holiday.

Ms Psaki was also asked about the issue on Tuesday, and did not rule it out while suggesting that a “range” of options remained on the table for the federal government.

The move could see traction in Congress as some Democratic lawmakers have also endorsed the idea. News reports have indicated that the White House has been considering such a plan for weeks, and some members of Congress were supportive of the idea as far back as last November.

Among them is Sen Raphael Warnock, a Democrat from Georgia who won a special election for his seat last year and is seeking reelection to a full term in November. He has also called for oil companies to be held “accountable” for making record profits amid the national gas price crisis, but it wasn’t clear what those supposed consequences would look like.

“Gas prices are significantly higher than they were just a few months ago," he said in February. “I think it is important to emphasize that while they are seeing record prices, oil and gas companies are seeing record profits. So it’s really important that we hold these oil and gas companies accountable.”

Some state legislatures are also considering pauses to state-level taxes on gasoline, including Michigan’s GOP-held state house. The idea is not yet supported by Ms Whitmer, who like other state-level Democratic politicians has been hesitant to end what is seen as a crucial funding pipeline. That leaves the burden for action on Congress.

"Right now, the best way to bring down the price of gas without impacting our ability to fix the damn roads is by suspending the federal gas tax,” her spokesperson told the Detroit Free Press.