The federal government could take steps to lower the price of a gallon of gas. This is to kill the $.184 tax levied now. With gas at $4, it would help? Maybe not a huge amount, but some.
The reason for the gas tax is not critical today. “The tax provides more than $23 billion per year in revenue for federal highway and public transit programs,” according to WABE. The tax on diesel is $.244, and trucking is essential to the US supply chain.
The federal gas tax has been in place, in one way or another, since 1919. It was raised most recently in 1993.
More critical, perhaps, is whether the states participate. That would be hard because each determines its own figure and how and when it is levied. The average among all states is about $.50 per gallon. And, it ranges widely. In California, it is $.709, the highest. In some of the Gulf States, the figure is under $.25.
Congress and the President would need to decide to forgo some highway repairs in the name of keeping inflation low. A month ago, gas had fallen to $2.98 for a gallon of regular, on average across the country. Today, it topped $4 according to the AAA. Some analysts believe it will go higher still.
According to the Bureau of Labor Statistics, in 2024, the annual cost of gas per household was about $2,400. The price since then has likely moved about $4,000 and could reach $5,000 if tankers are blocked from the Strait of Hormuz for another several weeks
The federal government has an opportunity to lower gas prices. By a huge amount, no. But every little bit helps.
Top Gaining Stocks
Top Losing Stocks