Gas prices have gone up by 41% since the Russian invasion of Ukraine.
The price for a gallon of gasoline in Corvallis currently ranges from $5.25 per gallon to $5.45 per gallon. With the average economy car having a 12 gallon tank, that means it will cost at least $63 to fill your tank. For semi trucks, the tank size can range from 125 to 300 gallons – a cost of $656 to $1,575 for a full tank which will be tacked on to prices consumers see at stores. The federal government has decided to take action with a surprising reaction from one local politico.
On June 22, President Joe Biden made the announcement that he would “pause” the 18.4 cent federal tax on each gallon of gasoline – a savings of about $2.21 for Corvallisites looking to fill an empty tank or $23 to $55 for semis. This discount will be in effect for three months, likely set up to improve travel numbers for the summer travel season.
House Speaker Nancy Pelosi called it “good PR,” but said there is “no guarantee that the reduction in the federal tax would be passed on to the consumer.” In fact, it’s estimated that oil companies could pocket nearly 80% of those savings rather than passing them on to consumers.
Amos Hochstein, Senior Advisor for Global Energy Security, called it “a little bit of breathing room for the American people as we head into the summer driving season.”
However, Oregon Rep. Peter DeFazio said this pause will cost federal infrastructure improvements about $26 billion – delaying needed improvements and costing “tens of thousands of jobs.”
DeFazio said to CNN, “It’s an attempt to provide some relief, but the people who are screwing the American consumers are the oil companies.” He went on to express his own doubts that “big oil” would really pass savings on to the average driver.
AAA estimates that 42 million people will soon hit the road for Independence Day weekend. The average gas price is down approximately 6 cents from just over $5 per gallon to just under $5 per gallon – barely enough to make a real difference to those who plan to spend their vacations driving. States can stop their own gas taxes – and Biden has urged them to, but again will the savings really land in the pockets of the consumers who need it most?
By Sally K Lehman
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