Biden to Call for Suspension of Gas Tax, RI Leaders Continue to Oppose Cut
GoLocalProv News Team
Biden to Call for Suspension of Gas Tax, RI Leaders Continue to Oppose Cut
Biden and his advisers have been discussing the issue for months in the midst of increasing political pressure to take action to address record-high gas prices. The announcement is expected on Wednesday, officials said, when the president is scheduled to deliver remarks on gas prices at 2 PM.
A suspension of the 18.4-cents-a-gallon federal gasoline tax and 24.4-cents-a-gallon diesel tax through September would require congressional approval, so a move by Mr. Biden to throw his support behind the effort would be largely symbolic, reported the Wall Street Journal Wednesday morning.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST"Lawmakers of both parties have expressed resistance to suspending the tax, a move that would likely need bipartisan support to become law. Some Democrats worry that a suspension of the tax would have a limited effect on prices, with oil companies pocketing much of the savings," WSJ continued.
On Sunday, GoLocal reported that United States Treasury Secretary Janet Yellen said that a federal gas tax holiday is “worth considering” — and that a recession is not “inevitable” — in an appearance on ABC’s “This Week."
In Rhode Island, House Speaker Joe Shekarchi, Senate President Dominick Ruggerio, and Governor Dan McKee all have rebuffed calls to halt the state gas tax.
Connecticut suspended its gas tax in March.
Also in March, Rhode Island Secretary of State and Democratic candidate for governor Nellie Gorbea urged McKee to pause the gas tax.
"Now is the time for leadership that stands up to hostile forces like Russia, while still ensuring economic security for Ocean State families," she said in March. "The Governor should pause the gas tax to provide immediate relief to the many Rhode Islanders facing higher prices at the pump right now."
"A simple action like that could be the difference for working Rhode Islanders to afford to get to their jobs," said Gorbea. "It will keep our economy rolling and keep families from having to choose between gas and food or gas and rent."
At the end of March, Connecticut Governor Ned Lamont signed legislation to suspend his state’s gas tax, lowering the cost of gas by 25 cents per gallon.
Rhode Island’s gas tax is substantially higher than Connecticut’s.
Rhode Island’s tax is more than $0.35 per gallon. Connecticut’s goes from $0.25 to zero.
On Monday, AAA reported Rhode Island’s average gas price is down 6 cents from last week ($5.01), averaging $4.95 per gallon. Monday’s price is 23 cents higher than a month ago ($4.72), and $1.98 higher than June 21, 2021 ($2.97). Rhode Island’s average gas price is 1 cent lower than the national average.
“Demand for gasoline has declined, perhaps in response to record-breaking high gas prices—and that has helped push down prices at the pump,” said Lloyd Albert, Senior Vice President of Government and Public Affairs for AAA Northeast. “This dip in demand, coupled with a drop in oil prices, has taken some of the steam out of surging gasoline prices. But consumers are still paying historically high prices.”
AAA Northeast’s June 21 survey of fuel prices found the current national average to be 5 cents lower than last week ($5.01), averaging $4.96 a gallon. Monday’s national average price is 37 cents higher than a month ago ($4.59), and $1.89 higher than this day last year ($3.07).