The average price of a gallon of gasoline reached a record $ 5 in the US, compared to 3 a year ago. This rise affects the country’s economy and causes a drop in the popularity of the American president, which has fallen below 40%.
The American president Joe Biden will ask Congress today to suspend for three months a federal tax on gasolinethe price of which has risen rapidly provoking the reaction of the citizens.
The White House wants a federal tax to be suspended by September 18 cents per gallon (3.78 liters) and called on states, which also impose taxes on gasoline, to do the same in order to “Immediately relieve American consumers suffering from Putin’s price increases”pointed out high-ranking officials.
THE The average price of a gallon of gasoline reached a record $ 5 in the US, compared to 3 a year ago. This rise affects the country’s economy and causes a drop in Biden’s popularity, which has fallen below 40%.
«The President is aware of the significant challenge posed by high gasoline prices to the families of workers.».
The cost of gasoline “It is growing dramatically around the world, by almost $ 2 a gallon, since Putin rallied his troops on the border with Ukraine.“, Pointed out the American officials.
The suspension of this federal tax on gasoline, as well as a tax of 24 cents per gallon on diesel during the summer season is expected to cost about $ 10 billion, amount that would go to road infrastructure. The Biden government assures that the amount will be replaced elsewhere.
At the same time, the White House asked the states to temporarily suspend the taxes they impose on gasoline. Some states, such as Connecticut and New York, have already done so.
On average, US states levy 30 cents a gallon on gasoline.
But according to analysts, about 46 states have not yet reacted, including California where gasoline is more expensive and reaches $ 6 a gallon.
Goal: one dollar less at the pump
To this proposal, which must be approved by Congress, are added other possible measures, which, according to the White House, will be able to reduce the price of gasoline at the pump by one dollar a gallon.
The Undersecretary of Energy Jennifer Granholm is expected to meet tomorrow Thursday with refinery managers in order to force them to increase their production.
In the face of rising gasoline prices, the Biden government has been trying for months to push for increased production. Rarely does it use one million barrels a day from US strategic reserves. At the same time, the White House has targeted the seven major oil companies, including ExxonMobil and Chevron, complaining “Above the normal profit margin” and asking them to perform “their patriotic duty”.
“Exxon earned more money than God this quarter”Biden commented ironically.
THE US inflation hit 8.6% in May on an annual basis, the highest level in 40 years. Energy costs increased by 34.6%.
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