What a federal gas-tax suspension means for energy prices

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What a federal gas-tax suspension means for energy prices
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The federal tax on gasoline stands at 18.4 cents a gallon, while the tax on diesel is 24.4 cents a gallon. If the federal gas tax was paused, pickup truck drivers stood to save $5.52 every week and compact-car drivers would save $2.21.

“‘It’s not the best idea. It’s bullish energy prices because it’s reducing the price to the consumer. And the law of demand says they’re going to consume more if you take down the price.’”

The federal tax on gasoline stands at 18.4 cents a gallon, while the tax on diesel is 24.4 cents a gallon. If the federal gas tax was paused, pickup truck drivers stood to save $5.52 every week, according to Patrick De Haan, head of petroleum analysis at GasBuddy. At the other end of the automotive spectrum, compact-car drivers would save $2.21.

August Brent crude BRN00, -2.21% BRNQ22, -2.17%, the global benchmark, fell $2.91, or 2.5%, to $111.74 a barrel on ICE Futures Europe, its lowest close since May 18. Back on Nymex, July gasoline RBN22, -1.37% rose 1% to $3.834 a gallon.

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