NewsNation

Governors push for federal pause on gas tax

(NewsNation) — Some state governors are calling for a federal pause on the gas tax amid the nationwide gas hike.

Six state governors, including Wisconsin, Minnesota, New Mexico, Colorado and others call for a federal gas tax holiday to help save hard-working Americans money at the gas pump.


As of Thursday, the national gas average hit a record high of $4.32 per gallon and that number is climbing; forcing people to make concessions.

This comes as President Joe Biden announced a ban on Russian oil imports this week, in retaliation for Russia’s invasion of Ukraine.

Prices at the pump were rising long before Russia invaded Ukraine and have spiraled faster since the start of the war. The U.S. national average for a gallon of gasoline soared cents in the past week, according to auto club AAA.

“I’m combining everything and making sure I do everything in one trip,” said Indiana resident Lorraine Smith.

In a joint letter to Congress, the governors write, “At a time which people are directly impacted by rising prices on everyday goods, a federal gas tax holiday is a tool in the toolbox to reduce costs for Americans, and we urge you to give every consideration to this proposed legislation.”

The bill, now sitting in the hands of the U.S. House and Senate, would put a pause on the 18.4 cents of federal gas tax per every gallon through 2022.

The pause would not impact roads and infrastructure, which is what this tax is used for. Instead, the money would be taken from the Treasury Department.

However, critics, like energy expert Joshua Rhodes say ultimately, much more changes are needed.

“I think 18 cents a gallon will put us back to two weeks ago,” he said.

Rhodes says electrifying transportation is vital and the time is now.

Rhodes also says as the demand increases for electric cars, those prices will come down to buy them and we will also begin to see more on the secondary, used car market.