Home World Pelosi refuses to support Biden’s plan to lower oil prices | Oil Prices | Gasoline Prices

Pelosi refuses to support Biden’s plan to lower oil prices | Oil Prices | Gasoline Prices

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Pelosi refuses to support Biden’s plan to lower oil prices | Oil Prices | Gasoline Prices

[The Epoch Times, June 24, 2022](The Epoch Times reporter Lin Yan comprehensive report) The top U.S. Democratic Party has a rare disagreement on lowering oil prices. The oil price issue is one of the key issues affecting the November midterm elections.

President Biden on Wednesday (June 22) called on Congress to approve a moratorium on federal gasoline taxes for the three months from July to September to help consumers cope with the soaring cost of living in the United States.

House Speaker Nancy Pelosi then responded that Democratic leaders would evaluate President Biden’s proposed temporary gas tax exemption, but she did not express her approval of Biden’s proposal.

In a statement Wednesday, Pelosi said they will see how the House and Senate move forward with the president’s proposal and come to a consensus, noting that the consensus builds on a bill to lower gas station prices that House Democrats have passed. , including the Consumer Fuel Price Gouging Prevention Act and the Reducing Food and Fuel Costs Act.

Both bills passed the House of Representatives, although they have little chance of passing the Senate.

Pelosi’s reaction to Biden’s proposal this time seems anomalous. In the past, she has typically praised the president’s agenda, especially when it comes to economics and other aspects.

Her brief, formulaic response showed concern among some Democrats in Congress. They argued that a moratorium on the federal gasoline tax would simply not show a noticeable drop in gas prices at gas stations.

House Ways and Means Committee Chairman Richard Neal, a Democrat, has openly questioned whether the money saved by the gas tax reprieve will go to consumers or be absorbed by oil companies?

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Pelosi herself flatly rejected the proposal to suspend the gas tax back in March. At the time, she said, there was no guarantee that the savings would go to consumers, it was just a politician show, always “doing something” and that’s it.

The price of gasoline in the United States is regulated by the market, and each oil company sets the price by itself. Even if the government cuts fuel taxes to intervene in oil prices, it will rise again due to rising demand.

AAA spokesman Andrew Gross said the cost of crude oil was the biggest factor in determining gasoline costs, accounting for about 56 percent, with the remaining about 14 percent coming from refining and 15 percent from transportation and marketing expenses. And the state fuel tax is only 15%.

For companies in the oil industry, they are reluctant to invest more in energy infrastructure for the unpredictable future as the Biden administration restricts the issuance of more drilling permits on public lands and the approval of pipelines for oil transportation. Although they know that increasing supply is the key to lowering oil prices.

The Democratic Party’s energy policy is to limit traditional fossil energy sources and encourage new clean energy sources.

Bob McNally, founder and president of Rapidan Energy, said the Biden administration doesn’t seem to understand that, given the timelines, capital investments and supply chain issues involved, the oil industry can’t turn on the taps today and turn on the taps tomorrow. closed again.

The federal gas tax in the United States is 18.4 cents per gallon, and drivers typically pay an extra $2.76 to fill up 15 gallons of gasoline at the gas station. The diesel tax is 24 cents per gallon.

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Biden said Wednesday that suspending the federal gasoline tax would give American households “a little bit of breathing room.” At the same time, he asked states to cut gasoline taxes, and oil companies and gas stations to hand over tax cuts.

On the other hand, the proposed federal gasoline tax cut would reduce the National Highway Fund by $10 billion.

Responsible editor: Li Yuan#

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