What a Gas Tax Holiday Could Mean for You
By Elspeth Mizner
ERIE, Pa. (Erie News Now) – As the cost of fuel continues rising, President Biden wants to suspend the federal gas tax for the next three months. He made a proposal to Congress on Wednesday.
Local gas station owner Denice Manus said lifting the tax would help most local drivers. “It would increase sales because the average person comes in now and they’re only able to purchase minimum as opposed as opposed to if they weren’t paying five dollars of the tanks, three dollars would be more likely better for them because they got enough to get through the day and get through the week”, said Manus.
But for transportation companies a small price cut is a small drop in the bucket.
Brandon Exley, the Director of Business Development for Barnhart Transportation said, “It’s not huge, but every little bit help.”
Exley explained that it costs around 16 hundred dollars to fill a large truck, and it will take more than a few cents a gallon to significantly lower that cost.
“President Biden’s proposal gas tax holiday would make a difference by 24 cents a gallon for us. So our trucks run with a tank that’s about 300 gallons, in aggregate that’s about $70-$72 if they were to do a full up”, said Exley.
Exley said he think this gas tax holiday could be beneficial. But, said there could be more of an impact if they states got on board too.
“Pennsylvania having one of the highest gas taxes for diesel comes in at about 74 cents per gallon so if you could get federal and state on board and states on board you’re probably pushing closer to a dollar which will make a meaningful impact”, said Exley.
Dr. Ken Louie, an Economics professor at Penn State Behrend said although this good be good news now, it won’t solve all the problems at hand.
“It’s a short term positive step but once again, the impact is going to be every modest, but long term in won’t solve the fundamental causes of inflation that we are seeing”, said Louie.