Pelosi: Gas Tax Suspension ‘No Guarantee’ of Savings

What happened: U.S. House Speaker Nancy Pelosi (D-Calif.) April 28 cast doubt on passing legislation that would suspend the federal gas tax to address high pump prices. House and Senate Democrats proposed such legislation earlier this year. Pelosi said:

‘There had been some interest in a (gas tax) holiday. The pros of it are that it’s good PR–you’re asking about it. Cons are that there’s no guarantee that the savings, the reduction in the federal tax, would be passed on to the consumers. … At the same time, it has to be covered. We have to pay for it because the money would come out of the Highway Trust Fund and we can’t have that shortfall.ÉIs it worth having to go get money to cover the shortfall in the trust fund, in order to give a tax break to oil companies?’

Last month ARTBA shared its updated report of the effects of gas tax changes on consumer prices with all congressional offices. The report shows that of 177 rate changes analyzed, just 18 percent of any change was passed on to consumers at the pump. Pelosi said Democratic leaders will instead focus on the Federal Trade Commission’s oversight of oil and gas companies.

In Virginia, state senators April 27 stopped Gov. Glenn Youngkin’s (R) proposal to suspend the gas tax through the summer.

Take action: Send your congressional delegation a letter urging opposition to efforts to suspend the federal gas tax through ARTBA’s Grassroots Action Center. ARTBA will continue meeting with congressional offices to make sure they are aware that a gas tax holiday is an ineffective means of consumer relief and to underscore the importance of stable funding for the Highway Trust Fund.