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Biden seeks ‘gas tax holiday’ to tame soaring US fuel costs

Measure would halt federal levy on petrol and diesel as consumers deal with high inflation

Joe Biden is calling on Congress to suspend the federal tax on petrol and diesel for three months in a bid to provide some temporary relief to American households grappling with high inflation.

The so-called gas tax holiday proposed by the US president would involve scrapping the 18.4 cent federal levy on every gallon of petrol, and 24 cent levy on diesel, that consumers pay at the pump.

The total cost of the measure would be approximately $10bn. Biden is asking Congress to replenish the highway trust fund, which is normally funded by those taxes, with other revenue increases.

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