Biden expects decision on federal gas tax holiday by end of week

President Biden on Monday told reporters he hoped to make a final decision about whether to support a federal gas tax holiday by the end of the week as high fuel prices continue to pose a problem.

“I hope I have a decision … by the end of the week,” Biden said from Rehoboth Beach, Del., where he spent the weekend.

Biden did not rule out sending gas rebate cards to Americans, though administration officials have in recent days sounded cool to the idea.

Suspending the federal gas tax would require an act of Congress, but a public push by Biden in favor of the policy could help spur action on Capitol Hill. 

An estimate from the Penn Wharton Budget Model released earlier this year found that suspending the federal gas tax from March to December of this year would reduce average per-capita gasoline spending by between $16 and $47 for that period.

A handful of states have already suspended their own gas taxes, including Maryland, Connecticut and New York.

The average price of gas topped $5 per gallon last week, according to statistics from AAA. Biden and his team have repeatedly sought to blame the price increases on the Russian invasion of Ukraine, which has roiled global markets. But the issue has provided significant fodder for Republicans, who have argued Biden has not done enough to boost supply and bring prices down.

The president has called on major oil companies to avoid price gouging, released oil from the Strategic Petroleum Reserve and called on major oil producers to boost supply.