President Joe Biden has called for a temporary halt to federal gasoline taxes in an effort to lower soaring gas prices for three months. However, the proposal has received immediate resistance from both business experts, lawmakers, and the oil industry.
Bob Yawger, managing director at Mizuho specializing in energy strategies, expressed skepticism about the plan, pointing out the shift towards electric vehicles in the foreseeable future. He noted the challenge of encouraging continued high production in the face of this impending change.
Biden has been vocal about his criticisms of the oil sector, attributing ongoing gas price hikes to their substantial profits. In a recent statement, Biden singled out Exxon for their significant profits amid inflation.
President Biden urged Congress to temporarily suspend the federal gas tax and asked states, oil companies, and gas stations to contribute to lowering gas prices.
— President Biden (@POTUS) June 22, 2022
CEO Michael Wirth of Chevron expressed concerns in a letter to Biden, highlighting the administration’s negative stance towards the industry and its potential detrimental effects.
Biden plans to meet oil company CEOs to discuss the proposal and encouraged them to provide practical solutions to address the current gas price challenges swiftly.
