DENVER (KDVR) — The White House is trying to save Americans money on gasoline, but most states would put a bigger dent in gas bills by suspending state-level taxes and fees.
President Joe Biden is proposing to temporarily suspend the nation’s 18.4 cent gasoline tax. With gas prices shattering records hovering near $5 a gallon, Biden says he wants to ease Americans’ financial burdens.
The federal gas tax holiday will save the average American about $8.10 a month.
The federal gas tax itself is a small fraction of the at-the-pump price. According to AAA, the national average for a gallon of regular gasoline is $4.97, meaning federal gasoline taxes comprise about 3.7% of a gallon’s price.
Americans drive an average of 1,125 miles each month, according to the U.S. Federal Highway Administration. Drivers’ monthly mileage depends on age and sex. Males aged 34-54 drive the most at nearly 1,600 miles per month, while women over 65 drive only 400 miles a month.
With the average gas mileage, Americans use an average of 44 gallons of gasoline per month or $220 at current prices. The federal gas tax represents about $8.10 of that total.
In nearly all cases, U.S. states would spare drivers more money if they suspended state-level gas taxes and fees.
Only Alaska and Missouri have lower state taxes than federal gasoline taxes. Alaska’s gas taxes and fees comes to 14.98 cents a gallon, while Missouri’s comes to 17.42 cents.
Colorado would save drivers 4.4% on a gallon by suspending gas taxes.