Should Politicians Enact a Gas-tax “Holiday” to Alleviate Pump Pain?

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SOUTHFIELD, Mich. — Gas prices are soaring as a result of Russia’s invasion of Ukraine and the sanctions that followed. Some are wondering whether a “holiday” on the gas tax would benefit drivers.

“It’s insane,” said Gawain Mandeville, a driver WXYZ spoke with in Dearborn as he filled up. “It eats away at profitability.”

Mandeville says he works as an Uber driver and is therefore particularly sensitive to the impact of rising petrol prices.

So how much tax do you pay at the pump?

According to the Michigan Petroleum Association, this is how it works. As of Monday morning, the average wholesale price of regular unleaded gasoline in the state of Michigan was $3.25 per gallon, plus 18 cents in federal tax, 27 cents in state motor fuel tax, and 21 cents in sales tax. This brings the base price of gasoline to $3.90 per gallon.

 

Gas Tax

 

“We are losing money on petrol,” said Jon Ahmad, a BP Gas Station employee in Dearborn.

Brother is wanted for the murder of his sister.

Ahmad reports that the station where he works sells gas for $3.89 per gallon, significantly less than cost. It is a loss-leader used to entice clients into the store in order to purchase higher-margin products.

“Low-cost gasoline to get things moving,” he says.

“It’s quite stressful,” Jim Hamade, owner of the Marathon at Lahser and the Lodge, said.

According to Hamade, when petrol prices are high, individuals spend less in stores.

As a result, gas station owners are fascinated by the notion being discussed by certain state and federal officials. While gas taxes help support schools and road maintenance, Michigan Petroleum Association President Mark Griffin says several state legislators have approached him to discuss a brief state gas tax holiday.

“I believe it is probably prudent to do everything possible to lessen the effects of the global crisis we are currently experiencing,” Griffin stated.

 

ALSO READ:-

Michigan Gas Prices Increased 42 Cents in One Week, Reaching Their Highest Level in Years.

The Michigan House Has Approved a Six-month Moratorium on the State’s 27-cent-per-gallon Gas Tax.

GOP Lawmakers Claim a Gas Tax Suspension in Michigan Is on Its Way to Gov. Whitmer’s Desk.

 

State legislators have not submitted legislation to enact such a tax holiday. Seven Action News contacted the White House and Governor Gretchen Whitmer’s office for comment, but received no response.

“It is increasing daily. If this trend continues, we could see $5 in the near future,” cautions Hamade.

According to industry experts, gas costs could approach $5 in the near future and, if current trends continue, could reach $6/gallon by summer.

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