We’re not yet into summer, but all the records for high gas prices have already been broken. There is little that can be done to deal with the instability of the international oil market, but can anything be done locally? Should fuel taxes temporarily be eliminated?
The war between Russia and Ukraine is moving towards an uncertain future. The conflict has brought harsh sanctions against the government of Vladimir Putin; among them, the United States suspended the purchase of Russian oil. This has led to a reduction in crude oil production, generating a shortage and raising fuel prices.
The Ukrainian resistance has surprised the world and has prolonged the conflict beyond what many experts anticipated. In short, the instability generated by the Russian invasion will probably continue for multiple weeks, until a time of the year when gasoline consumption increases: summer.
Can we put a stop to high oil prices? In a global free-market society this is unlikely, but there is one variable we can control: we can temporarily eliminate gas taxes.
Gasoline tax
When you buy a gallon of gasoline in North Carolina, you pay a state tax of about 36 cents and a federal tax of about 18 cents.
As of March 14, the average price of a gallon of gasoline in North Carolina was $4.18. If this 54-cent tax reduction is made, consumers would pay $3.64 per gallon.
This idea is already being explored by other states. Maryland Governor Larry Hogan and state lawmakers have agreed to a one-month suspension of the state’s 37-cent-per-gallon gas tax (the eighth-highest tax in the country). This bill is expected to arrive in the governor’s office in the next few days.
The average cost of a gallon of gasoline in Maryland is $4.30, according to GasBuddy.com.
Additionally, on March 8, the governors of Michigan, Colorado, Minnesota, New Mexico, Pennsylvania, and Wisconsin sent a letter to Nancy Pelosi and other congressional leaders calling for legislation to suspend the federal fuel tax.
In fact, in February, Democratic Senator from Arizona Mark Kelly presented the Gas Prices Relief Act, which seeks, among other things, to suspend the federal tax on gasoline for the rest of 2022.
A problem
Gas taxes help fund the construction and maintenance of roads and bridges, which has a direct impact on the safety of drivers.
Another factor to consider is that only eliminating taxes is not enough to make prices low. Control mechanisms must be established so that the savings are actually transferred to consumers and not to the companies that sell gasoline.
Until politicians agree, consumers have no choice but to find a way to consume less gasoline and to save money.
Find this article in Spanish here: