HOUSTON — While gas prices are down slightly today, they're still 30 cents higher than they were a month ago.
President Biden has called on Congress to suspend the federal gas tax for 90 days. In theory, that would decrease gas prices by 18.4 cents for regular and 24 cents for diesel.
Some experts tell CBS News that lifting the federal gas tax may not help drivers much.
First, the savings might not be significant. The Congressional Research Service found lifting the federal gas tax would save the average American family a little over $13 a month.
Another issue is supply and demand. One of the reasons gas prices are so high right now if there is just not enough. That’s thanks, in part, to increased demand from a COVID-weary public looking to travel and the war in Ukraine. Lowering gas prices could increase demand, while doing little to increase supply. And that could send gas prices even higher.
Another problem is those tax savings may not be passed on to consumers. That’s because technically it is fuel refiners and importers who pay the federal gas tax. According to CBS News, in the past when states have cut gas taxes, producers have kept some of the savings for themselves.