What a gas tax holiday would actually do

Gas prices in the U.S. have surged to an average of $4.46 per gallon, with further increases expected. Suspending the gas tax of 18.3 cents per gallon and the diesel tax of 24.3 cents could provide some relief, potentially reducing prices by 9%-14%. However, this would not fully offset the significant price increases since the onset of the war. High-profile politicians are advocating for this suspension, and there is a 25% chance Congress may approve it as prices continue to rise.

"Suspending the 18.3 cent-per-gallon gas tax and 24.3 cent diesel tax would bring some relief to consumers. However, it wouldn't come close to offsetting the nearly $1.50-per-gallon gas price jump since the war started."

"In late April, when gasoline prices were lower but still well above $4, the Bipartisan Policy Center estimated that suspending the tax would cut retail prices by 9%-14% per gallon."

"The respected energy consultancy Rapidan Energy Group sees 25% odds that Congress takes the leap. Those odds will rise the longer the disruption persists and the more prices climb."

Read at Axios