U.S. Energy Secretary Jennifer Granholm said on Sunday that the administration of U.S. President Joe Biden was considering a moratorium on the federal gas tax as one option for lowering costs.
The Biden administration earlier said on June 14 that they are considering granting a reprieve of the federal gas tax, to ease the burden of rising gasoline prices amid high inflation.
Federal taxes make up a small portion of what consumers spend on gas.
First established by the Revenue Act of 1932, the federal excise tax on gas was last altered in 1993 where, at the initiative of President Bill Clinton, it was raised to 18.4 cents per gallon of gasoline purchased at pumps, while the diesel tax was raised to 24.4 cents per gallon.
The tax is not indexed to inflation and is distinct from state gas taxes and sales tax.