Jun 22, 2022 - Economy & Business

Biden outlines plan to lower gas prices by $1 a gallon

President Biden speaks in the Eisenhower Executive Office Building on June 22. Biden is asking Congress to enact a three-month gasoline tax holiday. Photo: Samuel Corum/Bloomberg via Getty Images

President Biden made his case for his proposed three-month federal gas tax holiday Wednesday and asked states to suspend their gas taxes as he outlined a plan to lower high gas prices by $1 a gallon.

Driving the news: Biden spoke Wednesday afternoon of how the gas tax holidays were one part of his plan along with the federal tax holiday waiving the federal 18.4 cents per gallon tax and the 24-cent diesel tax.

  • State gas tax rates vary but Biden said they average 30 cents per gallon.
  • Biden pointed to Connecticut and New York, which have already temporarily suspended their taxes, and Illinois and Colorado, which have delayed tax increases.
  • Biden placed blame for the high gas prices on Russian President Vladimir Putin, who he called a "menacing dictator" and the "Putin Price Hike."

Details: Aside from the tax holidays, Biden is calling on the industry to increase refining capacity.

  • He asked the companies running gas stations and setting prices to "bring down the price you are charging at the pump to reflect the cost you are paying for the product."
  • Biden also said the country needs to grow and harness more energy and lower the price of electric vehicles.

What they're saying: "Together these actions could help drop the price at the pump by up to $1 a gallon or more," Biden said. "It doesn't reduce all the pain but it would be a big help."

  • "I'm doing my part and I want Congress, the states and the industry to do their part as well," Biden said. "And let's remember how we got here. Putin invaded Ukraine."
  • "But the simple truth is gas prices are up almost $2 a gallon because of Vladimir Putin's ruthless attack on Ukraine," Biden said. "We wouldn't let him get away with it."
  • "We're doing everything we can to reduce this pain at the pump now," Biden said.

Reality check: Biden's plan is likely going nowhere in Congress, with Senate Minority Whip John Thune (R-S.D.) saying that the bill would be "dead on arrival," Reuters reports.

Meanwhile, automakers are plunging investments into electric vehicle development and production — and AlixPartners expects EVs to account for 1 in 3 global vehicle sales by 2028, Axios' Nathan Bomey reports.

  • While electric vehicles eliminate the need for gasoline, most people still don’t own one and can’t afford one.

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