How Much Would You Really Save with Joe Biden’s Gas Tax Holiday?
Let me give you the answer right now: 18.4 cents per gallon.
18.4 cents is the federal gas tax on a gallon of gasoline. Here in California, where gas is almost $7 a gallon, this represents a whopping 2.6% savings. President Biden said that he is considering pausing the collection of the gas tax, and could announce his decision this week. He will need to have Congressional support and can’t unilaterally call for it on his own.
The average car fuel economy for cars in the US is 27.35 mpg, and the average driver puts 13,500 miles on their car every year. That would require about 494 gallons of gas. Saving 18.4 cents on each gallon would lead to an annual savings of $90.82. And that’s only if the oil companies and gas stations pass along the full 18.4 cents to customers. Highly unlikely.
At the end of the day, it’s doubtful that consumer will end up with any savings with a gas tax holiday. Not that any of this matters to me. I’ll stick to my Tesla EV charged with Tesla solar.