How much would SC drivers save from a Biden gas tax holiday? What about a state one?
South Carolina residents might soon get some relief from high gas prices through a federal gas tax holiday.
President Joe Biden said on Monday that he could soon decide on whether to support a temporary federal gas tax holiday.
“I hope to have a decision based on the data I’m looking for by the end the week,” Biden said about a gas tax holiday to reporters by the seaside in Rehoboth Beach, Delaware.
Biden added that he is also considering supporting giving gas rebate cards to Americans.
A federal gas tax pause would need an act of Congress, which so far has not gained much support, given that gas tax money is used to pay for road work.
Temporarily pausing the federal gas tax would reduce prices at the pump by $0.18 per gallon or about 3.7% for South Carolina drivers.
According to the U.S. Federal Highway Administration, Americans drive an average of 1,125 miles a month. With a average gas mileage of 25.7 miles per gallon, drivers use an average of 44 gallons of gasoline per month. At current South Carolina gas prices, that 44 gallons equates to about $198. Nixing the federal gas tax would shave off about $7.32 from that total.
Not a huge savings, but almost anything would be welcome amid such high gas prices.
According to AAA South Carolina, the state average for regular gas cost $4.50 a gallon Wednesday morning. A gallon of regular gas cost slightly less in Columbia at $4.43 a gallon.
The relief on federal tax would be even more welcoming in South Carolina since the state is set to raise its gas tax by $0.02 a gallon on July 1.
It’s the sixth and final consecutive year of increases for the state’s motor fuel user fee, which was passed in 2017 to raise the gas tax from $0.16 to $0.28 a gallon to help fund road maintenance and upgrades. The latest increase will raise the tax from $0.26 to $0.28 a gallon.
For an average driver in South Carolina, pausing the full state gas tax would save about $12.28 a month.
There was some talk in the South Carolina Legislature earlier this year about suspending the state gas tax. However, the South Carolina Department of Transportation and others opposed the idea and it was quashed.
This story was originally published June 21, 2022 at 10:53 AM.
