Senators Look To Ease High Gas Prices, But Only Temporarily
U.S. Senators Mark Kelly (D-AZ) and Richard Blumenthal (D-CT) introduced their Gas Prices Relief Act to the Senate. Meanwhile, Representative Chris Pappas (D-NH-01) will introduce companion legislation in the House. The act looks to suspend the 18.4 cents-per-gallon federal gas tax through October 1, 2026. The trio hopes the suspension of the tax will bring down fuel prices, which have risen following the war in Iran and a bottleneck in the Strait of Hormuz, through which much of global oil trade flows.
The act cites data from the American Automobile Association, which states that, in Arizona, gas prices have risen an average of 54 cents per week, taking the statewide average to $3.85 per gallon. Of course, the suspension of a federal tax would affect all states, and not just Arizona, Connecticut, and New Hampshire. The national average is slightly lower, but has trended sharply upwards in the past month. On February 2, per the US Energy Information Administration, the national average for all grades of gasoline was $2.995. Now, it stands at $3.633.
The act contains provisions to, ideally, ensure savings are passed on to consumers rather than pocketed by companies like Shell and BP. The Senators and the Representative say this would be done by "directing the Secretary of the Treasury to monitor the program and use available authorities to help ensure that the benefits of the tax suspension are passed on to consumers at the pump. Naturally, state-level taxes would be unaffected by this change.
Gas prices have begun to steadily climb in step with the cost of oil. The American-Israeli war on Iran has led to a blockade at the Strait of Hormuz, with Iranian attacks intermittently hitting tankers attempting to work their way out of the Strait. 32 nations have released oil reserves in the last day in an attempt to fight the rising cost of oil as a result of the conflict. Currently, the cost of crude sits at around $93 per barrel, compared to the $73 per-barrel cost prior to American strikes. You can read the full bill text here.