Suspend the federal tax for three months petrol will be asked by Congress today by the American president Joe Biden as the rapid increase that has taken place during this period provokes the reaction of the citizens.
The White House wants a federal one suspended by September tax 18 cents per gallon (3.78 liters) and asked the states, which also impose taxes on gasoline to do the same in order to “immediately relieve American consumers suffering from Putin’s price increases,” high-ranking officials said.
The average price of a gallon of gasoline reached a record $ 5 in the US compared to 3 a year ago. This rise affects the country’s economy and causes a drop in Biden’s popularity, which has fallen below 40%.
«The President is aware of the significant challenge posed by high gasoline prices to the families of workers.»Emphasize officials.
The cost of gasoline “has risen dramatically around the world, by almost $ 2 a gallon since Putin rallied his troops on the border with Ukraine,” US officials said, according to the Athens News Agency.
The suspension of this federal tax on gasoline, as well as a tax of 24 cents per gallon on diesel during the summer season is expected to cost about $ 10 billion, an amount that would go to road infrastructure. The Biden government assures that the amount will be replaced elsewhere.
At the same time, the White House asked the states to temporarily suspend the taxes they impose on gasoline. Some states, such as Connecticut and New York, have already done so.
On average, US states levy 30 cents a gallon on gasoline.
But according to analysts, about 46 states have not yet reacted, including California where gasoline is more expensive and reaches $ 6 a gallon.
Aim for one dollar less per gallon
To this proposal, which must be approved by Congress, are added other possible measures, which, according to the White House, will be able to reduce the price of gasoline at the pump by one dollar a gallon.
Undersecretary of State Jennifer Granholm is expected to meet with refinery officials tomorrow, Thursday, to press them to increase production.
In the face of rising gasoline prices, the Biden government has been trying for months to push for increased production. Rarely does it use one million barrels a day from US strategic reserves. At the same time, the White House has targeted the seven major oil companies, including ExxonMobil and Chevron, denouncing them “above the normal profit margin” and asking them to perform “their patriotic duty”.
“Exxon earned more money than God this quarter,” Biden said ironically.
Inflation in the US reached 8.6% on an annual basis in May, the highest level in 40 years. Energy costs increased by 34.6%.
Source: News Beast
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