Natasha Kaneva is joined by Ted Hall to discuss the implications of Biden administration’s proposed federal gas tax holiday. As millions of Americans prepare for summertime driving, including over next month’s July Fourth holiday, the Biden administration continues to look for ways to ease record fuel prices. Cutting fuel taxes, changing blending requirements, and capping gasoline exports could each provide some temporary relief to US consumers, yet, until supply-side issues—namely, an acute shortage of refining capacity—are addressed, most measures intended to reduce the price of gasoline will instead likely encourage Americans to drive more, in turn leading to higher gasoline demand and yet higher gasoline prices. The reality is that, with demand stimulated and supply constrained, fuel prices won’t drop until demand does.

Speakers

Natasha Kaneva, Head of Global Oil and Commodities Research

Ted Hall, Vice President of Global Oil Research

 

This podcast was recorded on June 24, 2022.

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