GRAND RAPIDS, Mich. (WOOD) — A federal gas tax holiday could save a driver with a full-sized car around $35 over three months, one expert says.
President Joe Biden on Wednesday asked Congress to pause the 18 cent a gallon federal tax to help bring down the price at the pump. But that could come at a cost, according to Patrick De Haan, the head of petroleum analysis at GasBuddy.
“It’s certainly more than nothing but it comes at a tremendous potential cost,” De Haan told News 8. “We are in the predicament of high gas prices because of the unbalance between supply and demand and when you cut prices that may incentivize more Americans to hit the road and it could exasperate the situation we are in today.”
He said a higher increase in demand could cause more issues.
“That could put us at a very contentious point later this summer, if we see a hurricane or major outage disrupt supply,” he said.
He said he is interested to see how an upcoming meeting with U.S. Energy Secretary Jennifer Granholm and refineries will go.
“I’ll be very curious to see the outcome of that, obviously we need to fix supply not necessarily bring down prices,” De Haan said. “It’s going to be very interesting to see what refineries will say, if the administration will help pave the road to bring back some of that refining capacity, that’s what we’re really needing.”
The lowest gas prices in metro Grand Rapids is currently $4.69 in Sparta, while the highest is $5.19 in Wyoming.
Gas stations shouldn’t have $5.19 prices, De Haan said, as the wholesale price of gas has decreased. He encouraged drivers to shop around.
He said while the markets are still “volatile,” he hopes gas stations see around a 25 cent drop between now and July 4.