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How are US states fighting gas and oil price spike amid Russia-Ukraine war?
- Maryland and Georgia are suspending gas taxes amid spike in cost
- The Russian invasion of Ukraine and inflation are to blame
- Other states are considering it too
Maryland and Georgia are two US states suspending gas taxes temporarily, as prices soar due to the continued Russian invasion of Ukraine. Governors Larry Hogan and Brian Kemp signed the legislation on Friday as the inflation has forced officials to think of ways to fight the rising costs.
Hogan’s office announced that Maryland became the first state to “enact immediate suspension of the gas tax”, and added, “this bipartisan action will provide some relief from the pain at the pump and it is possible because of the prudent fiscal steps we have taken, which have resulted in a record budget surplus. This is, of course, not a cure-all, and market instability will continue to lead to fluctuations in prices, but we will continue to use every tool at our disposal to provide relief for Marylanders”, as per Newsweek.
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He also tweeted that the solution won’t cure everything, but would provide some help to Marylanders.
Meanwhile, Kemp signed a bill to “temporarily suspend the state’s excise tax on motor fuel sales”, and it stays in effect till May 31. The governor took a swipe at US President Joe Biden while tweeting about the new bill.
He said, “Since day one, the Biden Administration has fueled inflation while hamstringing domestic energy production. That’s why today I signed a bill to temporarily suspend GA’s gas tax. While Joe Biden shifts blame, we’re fighting to provide relief at the pump”.
As per the American Automobile Association (AAA), the US currently broke its own record for an all-time gas price high. Previously, it was at $4.11 per gallon, in July 2008. Currently, it is $4.26.
Analysts have concluded that the continued invasion of Ukraine by Russia has driven up prices, Newsweek reported. The sanctions on Russia prevent it from exporting crude oil to certain countries, thus further increasing costs.
Also Read | Will Europe ban oil from Russia for war on Ukraine?
Georgia and Maryland aren’t the only two states to pass this bill. Lawmakers in New Jersey, Washington, New York, Pennsylvania and Maine are also considering a similar move.
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