As U.S. gas prices rise, lawmakers are developing a range of proposals to help motorists, from a $400 rebate for all taxpayers in California, to windfall taxes for oil companies, or a sliding fee schedule that could net families up to $300. every month.
The average cost of a gallon topped $4 amid domestic inflation and the impact of Vladimir Putin’s war in Ukraine.
The average price of a gallon of regular gasoline in Los Angeles hit a record $6,011 this week, even as the national average continued to decline slightly from its all-time high earlier this month, according to the AAA Gas Price Index.
An opinion poll released on Wednesday showed that nearly three-quarters of voters favored exemption from federal energy taxes to ease the burden.
And lawmakers across the country are pushing legislation to lower gas station prices.
The new bill, proposed by three Democrats – California’s Mike Thompson, Connecticut’s John Larson and Illinois’ Lauren Underwood – could cost some families $300 a month if the price of a gallon stays above $4.
“Americans are feeling the effects of Vladimir Putin’s illegal invasion of Ukraine, and right now we must work together on sound political solutions to alleviate the financial burden my constituents are bearing,” Thompson said in a press release.
“Putin’s price hikes are putting a strain on our economy, and I’m proud to be working with Congressmen Larson and Underwood to get this legislation in place to provide middle-class Americans with monthly payments to ease the financial burden of this global crisis.”
Their plan follows the economic impact of COVID model – offering $100 for single applicants earning less than $75,000, plus $100 for each dependent.
This is just one of a number of proposals presented recently.
In California, Democratic lawmakers want a $400 rebate for taxpayers, about $9 billion in state budget surpluses and equivalent to the average gas tax paid by residents during the course of a year.
Gas prices are displayed at a gas station in Los Angeles County earlier this week. Los Angeles has become the first city in the country to average regular gasoline prices in excess of $6 a gallon.
Average gas prices by state are visible in the US as of Tuesday.
And Rep. Peter DeFazio of Oregon is pushing his Stop Gas Price Gouging, Tax and Rebate Act, which taxes oil and gas companies on windfalls, redistributing their profits to ordinary Americans.
“Big oil comes foaming at the mouth,” he said.
“After price gouging by the Americans in 2021 to make record profits, big oil is now reaping the benefits of Putin’s price hike.”
According to a new poll by Politico/Morning Consult, the vast majority of voters are in favor of price cuts.
It found that 73 percent would support a “temporary repeal” of federal gas taxes, while 72 percent said they would support a similar move with state gas taxes.
Details were released the day after prices in Los Angeles topped $6.
On Wednesday they were $6,022 in the city and $5,875 in California.
The national average gas price was $4.237, slightly below the all-time high of $4.331 set on March 11, according to the AAA.
GasBuddy experts said Tuesday gas prices in Los Angeles became the first major U.S. city where gas prices hit $6.
California, which has strict regulations and above-average state taxes on gas, tends to lead the nation in fuel prices.
This trend has continued in recent weeks after Russia’s invasion of Ukraine disrupted global oil markets. But even as the price of crude oil is down about $20 from its peak earlier this month, gas prices in California continue to rise.
The national average gas price on Monday was $4.25, slightly below the record high of $4.331 set on March 11.
A driver fills up his car with gasoline at a Mobil station in Los Angeles, Thursday, March 10, 2022.
On Tuesday, US benchmark West Texas Intermediate traded at around $112 a barrel, up from a recent high of $130. For every $10 increase in the price of oil, a gallon of gas rises in price by about 20 cents.
Experts say gasoline demand has declined in recent weeks, contrary to normal seasonal trends, possibly due to staggering gas station prices.
“Typically at this time of year, with warmer weather and longer days, we’re seeing a spike in gasoline demand as more people hit the road,” AAA spokesman Andrew Gross said Monday.
“But we had a slight drop in demand last week, which could be due to higher pump prices. In our new survey of drivers, 59 percent said they would change their driving habits or lifestyle if the cost of gasoline hits $4 a gallon,” he added.
“And if gas goes up to $5, like in the western part of the country, three-quarters said they would have to change their lifestyle to make up for the price at the pump,” Gross said.
Patrick De Haan, head of oil analysis at GasBuddy, said that while prices could continue to decline nationwide this week, drivers could face even more fuel problems as the summer driving season begins.
“At this point, gasoline demand is showing absolutely no signs of slowing down under pressure from higher prices, even as the average California price approaches $6 a gallon and spring break is in full swing,” De Haan said in a statement. on Monday.
“If the situation really gets worse and more oil is withheld from world markets, it is possible that gas prices will still have to rise significantly in order for Americans to start curbing their insatiable demand for gasoline,” he added.
Westchester gas prices top six dollars as gas station prices continue to rise across the Southland on Sunday in Los Angeles.
Meanwhile, a new poll shows that most Americans blame President Joe Biden for the recent gas price hike. That’s a worrying number for Democrats ahead of the midterm elections and a sign that the administration’s attempt to shift the blame to Vladimir Putin isn’t working.
Roughly 39% in a new Emerson College poll said Biden was to blame for fueling problems, while 21% blamed gas sanctions on Russia, 18% blamed gas companies, and 9% blamed supply chain problems.
The results show that about the same number of voters blame President Biden and Russian sanctions and oil companies combined.
Biden and his administration have consistently blamed the coronavirus pandemic and Putin’s invasion of Ukraine on high inflation.
“Let’s be absolutely clear about why prices are high right now for two reasons. One of them was COVID – the way the global economy works,” he said in a speech to the National League of Cities last Monday.
“Now the second big cause of inflation is Vladimir Putin,” he said. “Make no mistake: Vladimir Putin is largely to blame for the current gas price spikes.