Biden, Cornered by Inflation, Urges Congress to Suspend Fuel Tax for 3 Months

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] U.S. President Joe Biden, who has been under pressure for rising inflation, urged Congress on the 22nd (local time) to pass legislation exempting the federal fuel tax for the next three months.

According to CNN and The Washington Post (WP), President Biden said in a national address at the White House that "by suspending the 18-cent federal fuel tax for the next 90 days, we can lower gasoline prices and provide some relief to families." He acknowledged that "exempting the fuel tax alone will not solve the (inflation) problem," but added, "It won't alleviate all the pain (for households), but it will be a big help."

The current federal fuel tax on gasoline is 18.3 cents per gallon. For diesel fuel, 24.4 cents per gallon is imposed. The White House expects about a 3.6% price reduction effect if the fuel tax is exempted. Congressional approval and other procedures are essential for the fuel tax exemption.

Additionally, President Biden urged each state to temporarily exempt state fuel taxes, which are higher than the federal fuel tax rates.

[Image source=AP Yonhap News]

This move comes amid mounting calls for accountability for President Biden due to the worst inflation in 41 years ahead of the November midterm elections. The White House expects that reflecting the fuel tax exemption could lower gasoline prices in the U.S. by up to $1 per gallon. U.S. gasoline prices have surged from the $3 range per gallon just a year ago to around $5 recently. According to the American Automobile Association (AAA), the national average gasoline price in the U.S. was $4.955 per gallon as of this date. In California, it was $6.371 per gallon.

Despite a slight recent drop in oil prices, President Biden criticized oil companies for gasoline prices not falling. He said, "This is a time of war," urging oil companies to join in stabilizing prices. He also attributed the recent surge in energy prices to Russia's invasion of Ukraine, noting that lawmakers imposed sanctions on Russia despite these inflation risks to defend freedom and democracy.

However, in Congress, not only Republican lawmakers but also some Democrats are either negative or reserved about the fuel tax exemption. There are doubts about whether the fuel tax exemption will actually benefit Americans. Within the Republican Party, there are even criticisms that President Biden, whose approval ratings have plummeted amid soaring inflation, is engaging in political maneuvering. As Biden's approval rating recently hit its lowest level, there are growing predictions that the Democratic Party will not maintain majority seats in both the House and Senate in this midterm election.

Meanwhile, the August West Texas Intermediate (WTI) crude oil price on the New York Mercantile Exchange closed at $106.19 per barrel, down $3.33 (3.04%) from the previous session. This closing price is the lowest since May 12.

This content was produced with the assistance of AI translation services.