Legislation seeks to lower gasoline prices, encouraging increased domestic energy production

© Shutterstock

Legislation recently introduced in the U.S. House of Representatives would lower gasoline prices, encourage increased domestic energy production, and reduce reliance on foreign energy sources.

The Pay Less at the Pump Act would amend the IRS Code of 1986 to terminate the Hazardous Substance Superfund (Superfund Tax) financing rate.

The Superfund Tax applies to imported petroleum products and is imposed on crude oil when it is received at a U.S. refinery. It was reinstated as part of the Inflation Reduction Act at a rate of $0.16 per barrel. The rate is indexed annually for inflation, and the current rate is $0.25 per barrel.

The national average for a gallon of gasoline is $3.57. Terminating the Superfund Tax would save an estimated $10.5 billion over the next 10 years.

Natural gas prices are projected to increase 25 percent since last winter compared to the previous year.

U.S. Reps. Mike Carey (R-OH), Ron Estes (R-KS), Kevin Hern (R-OK), Darin LaHood (R-IL), Nicole Malliotakis (R-NY), Carol Miller (R-WV), and Adrian Smith (R-NE) introduced the bill.

“The American people need any relief they can get when it comes to the cost of energy, and this is a step in the right direction to reduce energy prices across the board,” Carey said.