President Joe Biden told reporters he is open to enacting a “gas tax holiday” as prices hover around $5 per gallon on average across the country.
“Yes, I am considering it. I hope to have a decision based on the data I’m looking for by the end of the week,” Biden said on Monday.
The federal gas tax is 18.4 cents per gallon for regular gas and 24.4 cents a gallon on diesel. The money is used to pay for road projects, often on interstates.
A gas tax holiday could also spur a number of states to relax their taxes. On average, states charge a tax of 31 cents a gallon on regular gas and 32 cents a gallon on diesel.
While AAA reported that gas prices dropped below $5 per gallon on Saturday, the current rate of $4.98 a gallon remains $1.91 more than a year ago.