With gasoline and diesel prices remaining elevated due to Middle East and Ukraine-related supply disruptions, several members of Congress have unveiled legislative proposals aimed at providing relief to consumers ahead of the Nov. 3 midterm elections. Affordability concerns rank as a top voter priority, with nearly half of surveyed registered voters citing cost of living as their most important voting factor, according to a recent poll.
Current fuel prices have risen significantly in recent months. Regular unleaded gasoline averaged approximately $4.48 per gallon as of Tuesday, compared to $4.10 a month prior and $3.18 a year ago. Diesel prices have climbed to roughly $6.53 per gallon, up from approximately $5.59 a month earlier and $3.69 a year ago.
Three main legislative approaches have emerged. A bipartisan bill introduced on Monday would establish the Lowering Commuting Costs Act, creating an above-the-line tax deduction for commuting expenses worth up to $4,080 annually for single filers and $8,160 for joint returns. The deduction would cover gas, public transit, and toll expenses incurred after Dec. 31. A second proposal from Rep. Andy Harris would temporarily suspend federal excise taxes on gasoline and diesel through Dec. 31, which currently total 18.4 cents per gallon for gasoline and 24.4 cents for diesel. A third approach involves restricting diesel exports, with Rep. Tim Burchett introducing bills that would either prohibit exports through January 2027 or trigger an automatic export ban when diesel prices reach $5 per gallon.
Analysts have noted potential limitations to these approaches. Tax deductions would only provide relief during tax season and may offer minimal benefit to lower-income taxpayers. There is uncertainty whether consumers would fully receive savings from a tax suspension, as producers might adjust prices accordingly. Export restrictions, while potentially reducing Gulf Coast diesel prices temporarily, could have broader market consequences and may not provide relief to higher-priced regions.
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