About That Gas Tax Holiday...

Biden and his minions (puppet masters?) are offering another bit of bread-and-circuses in the face of growing popular outrage over the skyrocketing price of gasoline in America: They want to let us keep a bit more of our money by suspending the federal gasoline tax for three months.

Sounds nice, right?

An Internet friend threw some cold water on this little boon, suggesting that it'd amount to about $1.80 for the average driver.

My gut questioned that figure, so, in a demonstration of just how powerful the Internet is and just how easy research of this sort is compared to the days of my youth, I ran the numbers.

Average miles per year in America: 14,263, per the Federal Highway Association.

Average miles per gallon: 25.

Federal gasoline tax: 18.4 cents per gallon.

Weekly saving: $2.01. Round it to $2 even.

Three month federal gas tax holiday? You get to keep $26 more of your inflation-ravaged dollars. By the way, in those three months, a median income earner will lose $736 in buying power at the current inflation rate.

This makes the federal gas tax holiday a stunt, nothing more. Sure, it might encourage states to follow suit, as Biden is hoping. California's tax is over fifty cents per gallon. Newsom is talking about a "holiday" for his state, but all he's proposing is delaying the upcoming increase of 2.8 cents per gallon.

Whoop de doo.

Meanwhile, Biden et al continue to blame Putin's war and Big Oil greed for the skyrocketing price at the pump. While the Ukraine war certainly has been a contributing factor, oil prices were climbing well before its outbreak (gas prices are smoothed by futures contracts, and lag oil prices).

Despite endless deflections, it's obvious (and documented) that the Administration has been working steadily against domestic oil and gas production. Moreso, it has sent clear signals to the industry that it will continue in that vein, even as it demands the industry produce more. Note how domestic oil production has changed over time.

Oil production and gasoline refining aren't merely "turn the tap and start the pumps." Domestic refineries are running at nearly 94% capacity, above the long term 89.6% average. Domestic oil production has ebbed since its 2020 peak (see: pandemic), but is still running at historically high levels.

If we want more oil pumped and gasoline refine, producers are going to have to invest. But, the administration has made it abundantly clear that it wants to kill off the oil and gas industry, in its pursuit of "net-zero" green dreams, so why would the oil companies make investments that would take years to recoup even under normal conditions? If your landlord tells you you're not getting your lease renewed when it's up next year, why would you renovate your apartment or invest in your business?

This gas tax bit and the release from the strategic reserve are political theater. They're about showing that Joe cares, that he's "doing something," and also about signaling that there's not much more he can do.

There is, of course. He could change course on domestic energy, abandon the green delusion, show the oil and gas industry "you're back in business" by rescinding the dozens of anti-industry regs and mandates he's imposed (and send a similar signal to the nuclear power industry).

He won't, though, because the ultimate goal remains the same: Coerce the American public into abandoning its expectations of cheap and easy energy, and into accepting a more expensive reality with lower living standards. And demand they thank Biden et al for the privilege.

This isn't public service. This is the sort of Marie Antoinette disconnect that leads to torches and pitchforks. The near-certain mid-term election rebuke won’t change his mind either. We’re in for at least a couple years of pain, I fear.

---

If you enjoy The Roots of Liberty, please subscribe (if you have already, thank you!), and  please recommend the blog to your friends! While I share it as much as I can on social media, subscribing ensures you won't miss a post.

If you really like The Roots of Liberty and want to help keep it rolling, please consider becoming a paying subscriber here at Substack, or at a lighter level as contributor to the blog via Patreon.

Thank you for your support!

Yours in liberty,

Peter.