(WWLP) – Oil prices fell below $110 a barrel Wednesday after the Biden Administration called for action from Congress to enact a federal gas tax holiday.
22News spoke with a political consultant about the possibility of a federal gas tax holiday and what that means for Massachusetts residents.
The national average for a gallon of gas is now below $5 as oil prices and demand for gas also dip. President Joe Biden called on Congress for a federal gas tax holiday.
“It will provide families some immediate relief, just a little bit of breathing room as we continue working to bring down prices for the long haul,” said President Biden.
This proposed legislation, which would last 3 months, is projected to cost nearly 10 billion dollars. If passed, it would save people nationwide 18 cents per gallon on gasoline, and 24 cents per gallon on diesel.
“I think the likelihood of passage is pretty strong. How could you as a Democrat or Republican say no to tax relief for gas? On the other hand, you are going to see both sides taking shots at this because there is another cost, you cut the federal gas tax, that’s the money that goes towards roads, bridges, and all that so how do you replace that? Especially if it’s a lengthy tax holiday,” said Anthony Cignoli, Political Consultant.
While nearby states like Connecticut have placed a state-wide suspension on their gas tax. Massachusetts lawmakers have rejected a suspension.
“If Massachusetts would consider that on top of the federal, that might make some impact or difference.
But bare in mind that the Massachusetts legislature leaves this year on July 31st so if something were not to happen before the 31st you won’t see it in this calendar year,” Cignoli told 22News.
In the meantime, while Congress debates a gas tax holiday, experts say there will still be more demand for relief at the pump.
“If this does not pass, you may hear a stronger cry from Democrats and Republicans saying you got to do something about this. It’s the big oil companies, whose incredible earnings this year in the first quarter are incomprehensible to believe. The average person looks at that and they are looking for something bigger from their elected leadership right now,” said Cignoli.
You can find where the cheapest gas prices are here in western Massachusetts by clicking here.