What a federal gas tax holiday means for your wallet

Some drivers welcome any savings, while others call it a gimmick

SAN ANTONIO – Dwayne Smith pumped $100 in diesel into his truck’s tank and it wasn’t even full. Never mind carting around extra for his land-clearing equipment.

“I took my tank off because I couldn’t afford to fill it,” he said.

Like so many drivers, now paying an average of $4.60 a gallon, he needs relief.

“Anything could help,” he said. That includes a federal gas tax break.

President Biden said he hopes to decide this week whether he will support a pause in the federal gas tax. For every gallon of diesel, the gas tax is 24.4 cents. For every gallon of gasoline, it’s 18.4 cents. It’s expected that consumers would see about a 14.72 cent benefit, according to economists.

If that’s the case, how much will it save you? A driver with a typical 15-gallon tank would save $2.21 every time they filled up.

“(It’s) little help, but not too much,” said Guadalupe Tamez.

Gloria Casias agreed. It takes $120 to fill her pickup, and she fills it nearly every week, she said. To her, even a few dollars saved each time helps.

“Oh, yeah,” she said. “I drive to work every day.”

But other drivers, like Kerry Champion, see the move as nothing more than a gimmick.

“Saving us 18 cents when it’s up two dollars a gallon in a year and a half is insulting the American people,” she said. “I mean, do more.”

The administration does plan to meet this week with oil executives to push for more production and supplies, which should lower costs.

There is a downside the suspending the federal gas tax. Those funds pay for roads and infrastructure improvement, and billions of dollars would be lost in a matter of months.

Congress, with skeptics in both parties, still would have to give the green light to any tax break.


About the Authors

Marilyn Moritz is an award-winning journalist dedicated to digging up information that can make people’s lives a little bit better. As KSAT’S 12 On Your Side Consumer reporter, she focuses on exposing scams and dangerous products and helping people save money.

Before starting at KSAT in August 2011, Ken was a news photographer at KENS. Before that he was a news photographer at KVDA TV in San Antonio. Ken graduated from San Antonio College with an associate's degree in Radio, TV and Film. Ken has won a Sun Coast Emmy and four Lone Star Emmys. Ken has been in the TV industry since 1994.

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