Biden Suggests Fuel Tax Suspension, PA Waives B2 Mandate

Efforts continue mounting to provide fuel users with some relief. President Biden has reportedly endorsed a three-month suspension of the federal motor fuel tax, which adds 18.4 cents to each gallon of gasoline and 24.4 cents to diesel. Of course, such a suspension would require Congressional approval, and both sides have expressed hesitation in cutting the tax, which would add $10 billion to the Highway Trust Fund during those 90 days.

States have also taken action. This year, states including Georgia, Maryland, and Connecticut waived fuel taxes temporarily. Georgia and Connecticut still have exemptions in place, with the Connecticut waiver ending June 30 and Georgia’s tax deal ending July 14. And beyond taxes, states have other levers they’re considering to help consumers.

Yesterday, Pennsylvania announced that it would waive its 2% biodiesel mandate for 30 days. Although local terminals will still be required to supply B2 or higher blends, diesel delivered from other states will not be subject to the biodiesel mandate. Last week, guest contributor Sara Bonario explained why biodiesel supplies have been tight. The 30-day waiver will help Pennsylvania secure additional diesel supplies from out-of-state, and may also serve as a template for states like Minnesota that have their own biodiesel mandates in place.

 

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