Biden hopes to make decision on gas tax holiday this week

“I hope to have a decision based on the data,” Biden said. He stopped to talk to reporters as he and his family strolled down the beach near his Delaware vacation home.

Under a gas tax holiday, all taxes on the price of gas would be temporarily removed, offering buyers some relief. It does come at a cost — gas taxes fund roads, as Energy Secretary Jennifer Granholm said Sunday on CNN’s “State of the Union.”

Suspending the tax on gas prices would require congressional action, putting the fate of the holiday in the hands of an equally divided Senate. Republicans have brushed off gas tax holidays as political stunts, arguing instead for new regulations that would open the door to more drilling.

Even some Democrats, including House Speaker Nancy Pelosi (Calif.), are skeptical and have raised concerns that oil giants may not pass on the savings to consumers.

Some states are taking matters in their own hands. New York, Florida, Georgia and Connecticut have implemented gas tax holidays, while Illinois delayed a planned increase of its tax rate.

On Monday, Biden also told reporters that members of his team will meet with executives of major oil companies this week to demand an explanation for “how they justify making $35 billion in the first quarter.” He said he doesn’t plan to sit down with the CEOs himself.

While the president has consistently blamed the Russian invasion of Ukraine for the price hikes at the pump, he also chastised the nation’s major oil companies for not doing enough to lower prices. In letters sent last week, Biden condemned the oil companies for squeezing “historically high profit margins” from their refineries.

“At a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable,” Biden wrote. “Your companies need to work with my Administration to bring forward concrete, near-term solutions that address the crisis.”

He also threatened to invoke emergency powers if the companies don’t cut prices.

The companies appeared unmoved, as shown in a response from ExxonMobil, which insisted it has been investing billions to increase its refining capacity.

Oil refineries are making a windfall. Why do they keep closing?

The administration has introduced multiple strategies to help lower costs at the pump, including releasing oil from the U.S. reserve.

Biden’s statements Monday echoed what Treasury Secretary Janet L. Yellen said during an interview Sunday on ABC News’s “This Week.”

“That’s an idea that’s certainly worth considering,” Yellen said about a tax holiday.

Biden, she said, wants “to do anything he possibly can to help consumers” and “stands ready to work with Congress” on a tax holiday.

Granholm, on Sunday, also agreed that a tax holiday is a possibility but reminded viewers that suspending the gas tax could affect the nation’s infrastructure.

“Part of the challenge with the gas tax, of course, is that it funds the roads, and we just did a big infrastructure bill to help fund the roads,” she said. “If we remove the gas tax, that takes away the funding that was just passed by Congress to be able to do that.”

On Monday, the president also appeared to suggest that his administration is considering sending Americans gas rebate cards, which would temporarily help cover the cost of gas for millions of people.

“That’s part of what we’re considering,” Biden told reporters when asked about the cards. “That’s part of the whole operation.”

Last week, The Washington Post reported that White House officials were giving the idea of gas rebate cards a second look after initially proposing it months ago. But aides found that U.S. chip shortages would make it hard to produce enough rebate cards, two people familiar with the matter said.

White House officials also fear there would be no way to prevent consumers from using those cards for purchases other than gasoline, according to another person familiar with the discussions. Even if the administration embraces the proposal, it is likely to require congressional approval and would face long odds among lawmakers wary of spending more money.

Tony Romm, Jeff Stein and Tyler Pager contributed to this report.