• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

2

The Pentagon said Iran War costs $29 billion,but the real cost is closer to $200 billion—and counting

3

Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock

1

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

2

The Pentagon said Iran War costs $29 billion,but the real cost is closer to $200 billion—and counting

3

Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock
Personal Financegas prices

Biden is calling for a gas tax holiday. Here’s how much drivers would save

Alicia Adamczyk
By
Alicia Adamczyk
Alicia Adamczyk
Senior Writer
Down Arrow Button Icon
Alicia Adamczyk
By
Alicia Adamczyk
Alicia Adamczyk
Senior Writer
Down Arrow Button Icon
June 21, 2022, 10:43 AM ET
Updated June 22, 2022, 11:17 AM ET
Gas pump with high prices is shown
President Joe Biden said he will decide whether to support a national gas tax holiday.Saul Loeb—AFP/Getty Images
Add Fortune on Google for similar content.

To counter the sky-high prices American drivers are facing at the gas pump, President Joe Biden announced Wednesday he is calling on Congress to provide a three-month pause on the federal gasoline tax ahead of the July 4 holiday weekend.

“President Biden understands that a gas tax holiday alone will not, on its own, relieve the run up in costs that we’ve seen,” the White House announced, adding that Biden is calling for the reprieve to last through September. “But the President believes that at this unique moment when the war in Ukraine is imposing costs on American families, Congress should do what it can to provide working families breathing room.”

That would shave off about 18.3 cents per gallon, although it isn’t guaranteed that all of the savings will be passed on to consumers. The current nationwide average cost of gas hit $4.97 a gallon Tuesday, according to AAA. In at least 15 states, including California, Idaho, Indiana, and Michigan, the average price was $5 or more.

This requires Congress to act. The president does not have the authority to implement the tax on his own. With an equally divided Senate, and Republicans not likely to play ball, it’s not clear a federal tax holiday could even be implemented.

Even if it were, economists say suspending gas taxes wouldn’t do much to ease the financial strain Americans are feeling, as federal taxes don’t make up a large portion of gas prices. A report from the Penn Wharton Budget Model published earlier this year estimated that a 10-month federal tax reprieve would save consumers between $16 to $47 total, on average.

That report was published when gas prices were around $3.70 per gallon, on average, so consumers would save a little more now. But the savings still wouldn’t be dramatic.

Several states have introduced or implemented state-level gas tax holidays, including Connecticut, Georgia, Maryland, and New York, and the White House is also calling on states to do more. Tracking whether gas prices have fallen in those states as a result of the tax suspension is difficult to gauge, according to a separate report from the Penn Wharton Budget Model. That’s because it can be difficult to control for other factors that impact the cost of gasoline, including the cost of crude oil, refining costs, and more.

But the economists estimate that when these state-level tax breaks were put into place in Connecticut, Georgia, and Maryland, between 58% to 87% of the savings were passed on to consumers.

Though they would save a little bit at the pump, consumers would pay for the tax holiday down the road, economists say. The Penn Wharton Budget Model estimates that suspending the federal gas tax would cost $20 billion over 10 months. That money would come from funds earmarked for road improvements, though the White House also said Biden is asking Congress “to make sure that a gas tax holiday has no negative effect on the Highway Trust Fund.”

Still, Treasury Secretary Janet Yellen said Monday that a gas tax holiday could help cash-strapped commuters.

“It’s been a substantial burden on American households and I think, while not perfect, it is something that should be under some consideration as a policy to address it,” Yellen said during a press conference, according to the Associated Press.

The Biden administration is considering the tax holiday among multiple other measures for reducing prices at the pump, which have soared since Russia invaded Ukraine earlier this year.

This post has been updated with the White House’s statement.

Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.

About the Author
Alicia Adamczyk
By Alicia AdamczykSenior Writer
LinkedIn iconTwitter icon

Alicia Adamczyk is a former New York City-based senior writer at Fortune, covering personal finance, investing, and retirement.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Personal Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Personal Finance

Top CD rates from major banks June 24, 2026: Chase CDs, Bank of America CDs, Citibank CDs, and more
Personal FinanceCertificates of Deposit (CDs)
Top CD rates from major banks on June 24, 2026: Chase CDs, Bank of America CDs, Citibank CDs, and more
By Joseph HostetlerJune 24, 2026
1 hour ago
Current price of gold as of June 24, 2026
Personal Financegold prices
Current price of gold as of June 24, 2026
By Danny BakstJune 24, 2026
1 hour ago
Current price of Ethereum for June 24, 2026
Personal FinanceEthereum
Current price of Ethereum for June 24, 2026
By Joseph HostetlerJune 24, 2026
1 hour ago
Current price of Bitcoin for June 24, 2026
Personal FinanceCryptocurrency
Current price of Bitcoin for June 24, 2026
By Joseph HostetlerJune 24, 2026
1 hour ago
price-of-oil-06-23-2026
Personal FinanceOil
Current price of oil as of June 24, 2026
By Joseph HostetlerJune 24, 2026
2 hours ago
Current price of silver as of Wednesday, June 24, 2026
Personal Financesilver
Current price of silver as of Wednesday, June 24, 2026
By Joseph HostetlerJune 24, 2026
2 hours ago

Most Popular

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
Success
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
By Orianna Rosa RoyleJune 23, 2026
1 day ago
The Pentagon said Iran War costs $29 billion,but the real cost is closer to $200 billion—and counting
Economy
The Pentagon said Iran War costs $29 billion,but the real cost is closer to $200 billion—and counting
By Jacqueline MunisJune 24, 2026
7 hours ago
Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock
Banking
Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock
By Jim EdwardsJune 23, 2026
1 day ago
Current price of oil as of June 23, 2026
Personal Finance
Current price of oil as of June 23, 2026
By Joseph HostetlerJune 23, 2026
1 day ago
Texas and Charlotte used to build huge McMansions—now they're copying the California design tricks they once mocked
Real Estate
Texas and Charlotte used to build huge McMansions—now they're copying the California design tricks they once mocked
By Sydney LakeJune 22, 2026
2 days ago
Current price of gold as of June 23, 2026
Personal Finance
Current price of gold as of June 23, 2026
By Danny BakstJune 23, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.