this post was submitted on 13 May 2026
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politics

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A suspension of the tax would not necessarily mean a gallon would cost 18.4 cents less for drivers.

The fuel is generally taxed at a terminal before it’s distributed to gas stations, which makes it easier for the federal government to collect.

If drivers see any relief, “it’s going to have to be because that producer is then reducing the price that it charges to the gas station,” said Michael Negron, an economics fellow at the Center for American Progress, a research group.

Basically, a gas tax holiday gives money to the oil companies, not to drivers.

Given how oil and gas are traded globally traded, the fact that the US extracts more oil from the ground than it burns doesn't keep prices from rising. Only real insulation from this is to end the need to burn the stuff - that means bikes, ebikes, mass transit, and electric cars.

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[–] khornechips@sh.itjust.works 1 points 4 months ago (1 children)

Surely you understand why that’s not only political suicide, but also an incredibly regressive tax that will only further hurt people who have to drive their cars to work or go hungry/lose their homes.

[–] CombatWombat@feddit.online 1 points 4 months ago

Yeah? You think giving the oil companies an extra $0.18/gallon profit and then implementing rationing is gonna play better on main street?