By Arlenys Tabare
In recent months, gasoline in the United States has skyrocketed to more than $4.50 per gallon, and in an attempt to generate relief for consumers’ pockets, this Monday in an interview with CBS the president Donald Trump expressed that his next objective will be to suspend the federal gasoline tax for a time, But will this be a solution to the problem of increased fuel consumption?
The federal gasoline tax has been in effect in the United States since 1993, with a fixed tax since then of 18.4 cents per gallon for gasoline and gasohol and 24.3 cents per gallon for diesel, and the proceeds finance the Highway Trust Fund, which is used for road infrastructure and other public transportation projects.
And although the Executive seeks to suspend the tax after an order, Its interruption for a time requires approval by Congress; Furthermore, this suspension could cost the federal government hundreds of millions of dollars.
Given Trump’s proposal, some analysts and experts believe that it will not be the solution to the problem of rising gasoline prices. For Kyle Pomerleau, senior researcher at the American Endeavor Institute, a conservative organization, The federal gas tax has not been increased in years, so suspending it now will only exacerbate existing and persistent deficits.
Even specialists such as Patrick De Haan, head of oil analysis at GasBuddy, have commented that in the coming weeks many states could experience a strong round of increases in gasoline prices.
In this regard, Kenneth Kim, senior economist at KPMG LLP, considers that the high cost of fuel “is another negative aspect for the consumer in regards to the accumulated inflation they have had to deal with. Last year it was the tariffs and this year it is the high costs of energy. “The consumer is under pressure, and low-income consumers are suffering the consequences,” he told USA Nowadays.
For his part, Rob Thummel, senior portfolio manager at Tortoise Capital, proposes a more logical and effective path to improve the affordability problem and that includes reaching an agreement with Iran and opening the Strait of Hormuz.
“If global oil markets regain confidence that oil and refined products can spherical freely, “Crude oil prices could decline, which would likely reduce gasoline and diesel prices in the United States by a significantly greater amount than the 18.4-cent federal gasoline tax,” he said.
Finally, an analysis developed by the Bipartisan Political Heart In mid-April it indicated that the suspension of this tax for at least five months would generate a loss of income of $17 billion dollars and would increase the federal deficit to $12 billion.
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