Will a federal gas tax holiday bring relief to drivers?
BIRMINGHAM, Ala. (WBRC) - President Biden is considering a federal gas tax holiday. If that happens, we could see some relief at the pumps. However, AAA of Alabama says there’s no guarantee we’ll see savings.
The current federal gas tax is a little over 18 cents a gallon. A temporary delay of that tax requires Congressional approval. Even if that happens, AAA says gas stations are under no obligation to lower their prices that much due to the free enterprise economic system.
Clay Ingram with AAA says a federal gas tax holiday sounds like a good thing but in reality, it may not make much of an impact.
“There’s no guarantee that the gas stations will drop their prices at the pump that same amount. They are under no obligation to do that. They are free to price their gas at any price level they see fit That’s one of the reasons our prices are so high,” Ingram said.
President Biden is also considering some sort of gas rebate card but we don’t know specifics. Biden says he’s also plans to meet with the CEOs of the major oil companies to see how they “justify making 35-billion in the first quarter.”
Right now, AAA says gas in Alabama is around $4.58 a gallon for regular.
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