Gas Tax Holiday Is Not the Way to Address High Energy Costs

Washington, DC – This morning, President Biden called on Congress to support a suspension of the federal gas tax in an attempt to ease the pain Americans are facing at the pump. Gas has reached record high prices in recent months, as oil companies have limited production and used inflation and the war in Ukraine as cover to jack up prices and bring in record profits. Experts agree that most of the savings from a gas tax holiday would go toward excess profits for the industry, rather than being passed onto consumers. 

In response, Sierra Club Legislative Director Melinda Pierce released the following statement: 

“President Biden and the Democrats continue to explore all potential tools available to address the pain American families are facing with skyrocketing energy costs, while Republicans have done nothing but try to use the crisis to their political benefit. But a gas tax holiday – which amounts to little more than yet another subsidy for the fossil fuel industry – is not the answer. Rather than helping oil companies pad their bottom lines even further, Congress must take immediate action to tackle industry greed by taxing the excessive windfall profits the industry is earning at Americans’ expense, and to make investments in affordable, accessible clean energy by passing a bold reconciliation package. Now is the time for ambitious action through the reconciliation process to free Americans from the whims of greedy oil companies once and for all.”