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San Diego expert provides insight into possible gas tax holiday

Posted at 6:04 AM, Jun 21, 2022
and last updated 2022-06-21 09:51:10-04

SAN DIEGO (KGTV) - Gas prices nationally and in San Diego are making filling up gas tanks a painful task, and with that, President Biden is considering a temporary halt in the federal gas tax to help combat the high prices.

"I hope I have a decision based on data I'm looking for by, by the end of the week,” Biden said.

"I think we all sympathize with anybody that has to fill up their tank and that's most of us,” said Craig Barkacs, of the University of San Diego's Knauss School of Business.

Barkacs said that while the White House may be trying to help out drivers, it may not provide that well-sought-after relief.

"No matter what the government does with respect to the gas tax, there's no guarantee that will be passed through to the consumer. I mean, quite frankly, oil companies can actually raise prices to fill that gap,” Barkacs said.

Barkacs also told ABC 10News that a possible gas tax holiday could impact other needs as well.

"If you remove the gas tax, the gas tax is for, for example, road repairs. And, obviously, no one is going to say that our road don't need repairing,” Barkacs said.

In San Diego, the price of a gallon has dropped slightly for five straight days, but it's still much higher than a year ago.

"The average in San Diego is now $2.11 higher per gallon than last year at this time,” said Auto Club of Southern California spokesperson Doug Shupe.

The Auto Club of Southern California said there's a reason for the minor dips.

"The demand has seen a very slight dip in recent days likely to the record-breaking pump prices that so many drivers have had to pay. It's likely leading many people to make choices in their daily driving routines,” Shupe said.

The search for help at the pump stretches to Sacramento as well; state law makers are looking for answers while forming a committee to investigate gas price hikes.

They'll look at the reasons behind the high prices and hear recommendations for how to ease the burden.