Friday, 1 July, 2022
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US President Biden urges petrol tax 'holiday' as fuel prices bite

US President Biden urges petrol tax 'holiday' as fuel prices bite

US President Joe Biden has called for a three-month suspension of America's national gasoline tax in response to the country's soaring energy prices.

The average cost of a gallon of gas, or petrol, is hovering near $5 (£4), up from roughly $3 a year ago.

With national elections for Congress coming in November, Mr Biden is under pressure to respond.

Analysts say that removing the levy would have a limited impact on household petrol and diesel costs.

Political support for the gas tax holiday, which would require an act of Congress, is also uncertain.

What is the US gas tax?

Currently, the US imposes a tax of roughly 18 cents per gallon on gasoline and 24 cents on diesel, using the money collected to help pay for highway infrastructure.

Eliminating the levy through September, as Mr Biden has proposed, would cost the government an estimated $10bn.

The move is the latest effort from countries around the world to address the soaring energy costs.