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Gas will remain above $4 despite tax holiday
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Prices at the pump will still remain well above $4 even after federal gas tax is temporarily suspended, according to an industry expert.
On Wednesday, President Biden called on Congress to suspend federal gas and diesel taxes through September in an effort to ease the pain at the pump for cash-strapped motorists across the country.
If Congress heeds the president’s call, the suspension, in conjunction with the falling oil market, could cause prices to drop 30-35 cents per gallon to $4.65, according to Lipow Oil Associates President Andy Lipow.
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The suspension of the federal excise tax is a temporary measure that will provide immediate relief to the consumer, helping them save 18 cents per gallon, "but it does nothing to increase supplies," Lipow told FOX Business.
On top of that, "this proposal is happening at the same time that the European Union is phasing in its ban on the purchase of Russian crude oil and refined products," Lipow added. "As that ban takes effect, the struggle to find alternative supplies will intensify and that could push up prices."