Biden says the decision on the gas tax holiday could come this week

Rehopoth Beach, Tel. (AP) – President Joe Biden said Monday he would decide by the weekend whether to support a federal petrol tax holiday that could save U.S. consumers up to 18.4 cents a gallon.

“Yes, I’m considering it,” Biden told reporters after walking on the beach near his holiday home in Delaware. “I hope to make a decision based on the data – I’m looking into the weekend.”

Management is increasingly looking for ways to protect the public from the high cost of the pump, which began to climb last year and soared after Russia invaded Ukraine in February. According to the AAA, gas prices across the country are on average less than $ 5 a gallon.

Biden said his team members will meet with CEOs of major oil companies this week to discuss price increases. Biden lashed out at the oil companies, saying they were making more profit when people realized the crisis of skyrocketing costs at the pump and inflation. But Biden said he was not going to meet with oil executives himself.

“I want an explanation as to why they are not refining too much oil,” Biden said.

Biden management has already released oil from US strategic reserves and increased the ethanol blend for the summer, in addition to last week sent a letter to oil refiners urging them to increase their refining capacity. Yet those efforts have not significantly reduced price pressures, and management is now considering a gas tax holiday. Taxes on petrol and diesel fuel help pay for highways.

The Ben Warden budget model on Wednesday released estimates showing consumer savings at the pump due to gas tax holidays in Connecticut, Georgia and Maryland. Most of the savings went to consumers instead of service stations and others in the energy sector.

Energy Secretary Jennifer Cronhome warned in an interview with CNN’s State of the Union on Sunday that “part of the challenge for the gas tax is to finance the roads.”

But on Monday Treasury Secretary Janet Yellen was open to a gas tax holiday, noting that “consumers are really suffering from higher gas prices.”

“This is a significant burden on American families, and I think, while not right, it is something that needs to be considered by some as a policy to address it,” Yellen told a joint news conference with the Canadian Deputy Prime Minister in Toronto on Monday. Finance Minister Christiaan Freeland.

The gas tax holiday will face an upward spiral for congressional approval. Democrats have a slim majority, and both Democratic Speaker Nancy Pelosi and Senate Minority Leader Mitch McConnell have expressed skepticism about such a move in the past.

A White House official stressed the need for anonymity to discuss options on gas prices, saying talks were ongoing and that Biden wanted to explore all possibilities to bring down prices.

Oil refineries say the capacity to produce extra gas and diesel fuel is low, meaning prices will remain high until demand begins to decline.

Sent by American Petroleum Company and American Fuel and Petrochemical Manufacturers A joint letter On Wednesday he told Python that the refineries were already operating close to their maximum capacity and that almost half the capacity had been taken offline due to the relocation of facilities for renewable fuel production.

“Today’s situation did not develop overnight and will not be resolved soon,” the letter said. “We call on the United States to take action to protect and develop America’s energy security and refining capacity, and to promote domestic energy production, including reducing the burden of new infrastructure and regulation.

After strolling on the beach with her daughter Ashley, granddaughter Naomi and her granddaughter-in-law, Biden often stopped chatting with beach travelers who had spent the Junteenth federal holiday on the beach.

He took some time to deliver on the promises of inflation – the consumer price index rose to 8.6% in May, nearly 40 years ago – from the same month a year ago – and economists’ growing warnings may be on the verge of a recession.

“We’m going to get this, guys,” Biden told a group of beach goers.

Last week, the Federal Reserve accelerated its drive to control inflation by raising its key interest rate to three-quarters of a point – its biggest increase in nearly three decades – signaling further major rate hikes.

Former Treasury Secretary Larry Summers told NBC’s Meet the Press on Sunday that “the dominant probability is that the U.S. economy will see a recession by the end of next year.”

Biden said he spoke with Summers, who served as secretary of the Treasury in the Clinton administration, on Monday morning.

“There is nothing unavoidable about a recession,” Biden said.

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Boak report from Baltimore. AP writer Rob Gillies contributed from Toronto.

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