Would it, though?
(Yahoo Finance) Target (TGT) CEO Brian Cornell isn’t convinced that a potential federal gas tax holiday, an idea floated by President Biden on Monday, is a real solution to the elevated gas prices facing drivers across America.
“We have a classic supply and demand challenge,” Cornell said at an event held by The Economic Club of New York. “And in all due respect to a gas holiday, it’s only going to fuel the demand. It’s doing nothing to increase supply. So that’s a temporary, almost a mini stimulus, but it’s time to fundamentally change the supply and demand curves for fuel and transportation.”
The proposal, which would require congressional approval, could save consumers as much as 18.4 cents per gallon. The national average for a gallon of gas currently hovers just below $5 per gallon, according to AAA.
Stewart Glickman, energy equity analyst at CFRA Research, recently echoed that sentiment.
“If we’re going to get U.S. gasoline prices to fall, it’s probably not going to be a supply-driven solution,” Glickman told Yahoo Finance. “The solution here, unfortunately, is probably a recession that kills demand and reduces scarcity of supply.”
Would saving a whopping 18.4 cents create that much more demand? Would it incent people to travel more? To head to the beach or the mountains for the weekend? He’s right though that it is a temporary gimmick (my word), and does nothing to change supply. The problem with a recession is that it still doesn’t fix the issue unless the government gives approval for new refineries. Biden and his Comrades won’t be able to to force people into EVs, because a) people won’t have the money for them, and b) there still won’t be enough energy production to charge them.
And you don’t fix a problem made way worse by stimulus with more stimulus. Biden doesn’t want to fix the problem, otherwise he’d be looking at emergency authorization for more refineries. He wants there to be paid to instituted his climate cult policies.
Quick Update: here’s his supposed big plan
Biden to call on Congress to approve 3-month gas tax holiday
President Joe Biden on Wednesday will call on Congress to pass legislation creating a federal tax holiday on gas and diesel fuel for three months in an effort to lower prices for consumers at the pump, according to senior administration officials.
The pause would trim 18 cents off each gallon of gas and 24 cents for diesel at a time when the summer driving season is getting underway. The legislation would cost an estimated $10 billion, a senior administration official told reporters on a call.
Now, put into numbers exactly how much this will really help Americans. It won’t be a lot, and, it doesn’t last.
The federal gasoline tax is 18.3¢ — or is it 18.4¢? — per gallon. The illustration used in this article is a photoshop from an actual left exit sign, 67B if I remember correctly, north of Harrisburg, Pennsylvania, US 322, to State College and Lewistown, and that’s perfect, because Pennsylvania has the nation’s second highest gasoline tax at 59¢ per gallon.
Well, maybe it’s more than just the sign photoshopped, because I-81 would never be completely free of vehicles in that location. I-81 in Pennsylvania is a horrible road, jammed with traffic, and if PennDOT is widening it to three lanes each way in the Harrisburg area, it narrows down to two north if I-78 and south of the Schuylkill (pronounced skoo-kul) River to the Maryland state line.
Fossil fuel companies LOVE these high prices. Why would they even consider risking billions of dollars to build a new refinery??
Global csr builders have already said they will stop building gasoline vehicles in 13 years. Fossil fuel industry wants to make their profits NOW
The refineries thst closed and are for sale??
No one wants to put money into them.
Should BIG GOVERNMENT interfere with the free markets? Isn’t that socialism???
Teach is thst what you want?
Johnny-when are you going to comment on Apple, and various other companies, who are making a lot more money than Exxon? I’m sure you just forgot..
Here, Johnny-Exxon’s letter to Brandon. It wouldn’t copy and paste, so….
“We’ve been in regular contact with the administration to update the President on how Exxon has been investing more than any other company to develop oil and gas supplies. This includes investments of more than $50 billion over the last 5 years, resulting in an almost 50% increase in our US production over this period. Globally, we’ve invested double what we’ve earned over the past 5 years-118 billion on new oil and gas supplies compared to a net income of 55 billion. This is a reflection of the companies long term growth strategy. Specific to refining capacity in the US, we’ve been investing during the downturn to increase refining capacity to process light crude by about 250,000 barrels a day-the equivalent of adding a new medium size refinery. We kept investing during the pandemic, when we lost more than $20 billion and had to borrow more than 30 billion to maintain investment to increase capacity to be ready for post-pandemic demand. In the short term, the US government could enact measures often used in emergencies following hurricanes or other supply disruptions-such as waivers of the Jones Act provisions and some fuel specifications to increase supplies. Longer term, government can promote investment through a clear ans consistent policy that supports US resource development, such as regular and predictable lease sales as well as streamlined regulatory approval and support for infrastructure such as pipelines.” Johnny-put down the Cherrios and turn off CNN…
Jilly relies on the word of oil company flacks. But in this case part of what they say is consistent with the facts on the ground!!
US oil production has increased steadily since the trump recession.
Global oil refining is down about 3 million bbls/day, with 1/3 being a drop in US refining, a result of the pandemic AND the transition from fossil fuels. This represents no more than a few percent of the total global consumption of refined petroleum products. China is a large refiner of crude but has a quota on how much refined petroleum they export. And of course there are bans on importing Russian petroleum.
Jilly – when will you comment on the comparison of profits between a commodity company (e.g., oil) and a consumer product company (e.g., Apple)? Most people MUST use petrol but no one is compelled to buy a new i-Phone.
Once again Rimjob posts his little fairy tales as opposed to actual facts.
More at:
https://wattsupwiththat.com/2022/06/21/biden-ahead-of-schedule-in-destroying-us-offshore-oil-production/
#LetsGoBrandon
#8.6%
Bwaha! Lolgf
There is no shortage.
The Keystone State’s gasoline tax is 59¢ per gallon; Kentucky’s is less than half that, at 26.0¢ per gallon, but the roads in the Bluegrass State are generally in better shape than those in Pennsylvania. More, Kentucky doesn’t have nearly the number of toll roads, so almost all of the highway maintenance funds come from the general fund, not toll collection.
Yes, Pennsylvania has worse winter weather than Kentucky, but that isn’t enough to account for the huge difference in taxes. Rather, the Commonwealth robbed from the highway taxes for other stuff for decades, and is now in a huge catch-up mode on maintenance.
There was other stupidity as well. When the Obysmal stimulus plan was passed, one thing Pennsylvania used the money on was repaving a section of US 209 going up Mansion House Hill out of Jim Thorpe. That section was scheduled to be repaved about three years later under normal plans, and did not need to be repaved in 2009. The idea was to keep people employed, but that meant that, come 2012, when it would normally have come up for work, that job wouldn’t be there.
Mx Teach advocates that President Biden invoke emergency authorization to build more refineries. Really? A “conservative” who wants the gov’t involved in gasoline production.
We pronounced Schuylkill as Sure Kill.
Brandon caused the problems.
Maybe he should stop the blame game and get out of the way.
Or ride his bike more often.
#LetsGoBrandon
#8.6%
Bwaha! Lolgf
The distinguished gentleman from Missouri wrote:
I’ve heard that before, but it’s nowhere close to accurate: traffic on the Schuylkill Expressway is so slow that accidents are almost never fatal. Unless, of course, someone jumps out of his car and busts a cap in your ass!
This scheme by the Stumbles and Mumbles Team is merely political theater. Their political dogma will not allow them to do anything actually useful. The EV rant is again, political theater. If there isn’t enough sparktricity to keep the lights, AC, and fridge on, then charging EVs is not going to work out well. Besides, we don’t have hardly any EV heavy trucks, tractors, or heavy equipment at this point.
A “tax holiday” on fuel isn’t going to do much for non-taxed off road diesel which produces food and builds things. Besides diesel is somewhat shorter in supply than gas at the moment in some areas.
Just throw the bums out in November.
And why do the media and Teach quote CEOs as if they know more than everyone else?
In Teach’s citation is also Stewart Glickman, energy equity analyst at CFRA Research, who said, “If we’re going to get U.S. gasoline prices to fall, it’s probably NOT going to be a supply-driven solution.”
Jeff,
You really do not understand the comment by the CEO? Typical. The issue is the silly but tragic measures by Biden and the Dem/ communist in their response to the climate hoax. The dumbass Biden thinks that we are in a transition away from fossil fuels, despite the fact that we do not have alternatives. So Biden’s attitude is the driving factor in sky high prices. Unfortunately, getting rid of Biden would likely do little for our energy problem as the Dem/ communist are intent on our destruction.
porter dave,
What’s not to understand about the CEOs opinion? Are you that dense?
The US is producing MORE oil now than when trump left office! Neither President Biden nor mr trump control the price of crude oil. OPEC+ does. Recall that trump begged the Saudis to cut production to drive crude prices UP to make US producers competitive.
You and science deniers like you do not understand the basics of global warming, but evidently polar ice doesn’t watch FOX or read Watts and keeps melting.
“If we’re going to get U.S. gasoline prices to fall, it’s probably NOT going to be a supply-driven solution.”
What the hell does that snippet mean? I can’t even find Stewart Glickman on Wiki so why would we give a rats ass about his opinion? Just because you quoted a guy from a conservative Canadian radio station you think it means something? Just say what you think and stop being silly.
FJB the daughter dittler.
You should ask Mx Teach. It’s his quote.
FDT, the daughter groper.
$26 baby. Come to papa. (We, luckily, don’t have to drive much.)