Fuel Foolishness

Reducing the federal gas and diesel taxes from 18.4 cents/gallon and 24.4 cents/gallon, respectively, to zero for three months, would cost the Treasury $10 billion, and probably not much help consumers. That’s because the slightly lower price would boost demand but won’t boost refining capacity, the critical supply-chain problem. The more the price reduction stimulates demand, the more the oil industry pockets. I bet the average driver saves maximum $10.