Need Gas Money? The Gas Rebate Act Offers $100+

Gas+prices+in+Virginia+at+an+all-time+high.+Photo+via+ABC+13+News.

Gas prices in Virginia at an all-time high. Photo via ABC 13 News.

Attempts to alleviate high gas prices across the country include Democrats in the Senate proposing to eliminate the federal sales tax on gas, and a more controversial course of action being discussed is lifting sanctions on Venezuela to increase oil imports.

President Joe Biden recently announced the U.S. will use part of the U.S. strategic reserve’s oil. He said it is not certain how much money this will save Americans, but it could be anywhere from 10 to 35 cents a gallon. For reference, the national average is $4.192 as of April 3, 2022, according to the American Automobile Association. A year ago, the national average was $2.873. This means that the national average after releasing oil reserves would still be about $0.969 higher than a year ago. 

In addition to releasing the nation’s oil reserves, the Gas Rebate Act proposed in the Senate in mid-March and similar direct aid is most likely to be the answer to rising gas prices and the strain on American families. 

From U.S. Representative Mike Thompson’s March 17 press release:

Reps. Mike Thompson (CA-05), John Larson (CT-01), and Lauren Underwood (IL-14) introduced the Gas Rebate Act of 2022 to address high gas prices by sending Americans an energy rebate of $100 per month (and $100 for each dependent) for the rest of 2022 in any month where the national average gas prices exceed $4.00 per gallon.

The rebate follows the same phaseout as the most recent Economic Impact Payments (EIPs):

$100 for single filers earning less than $75,000 and phased out to $80,000

$100 for joint filers earning more less than $150,000 and phased out at $160,000

Basically, eligible Americans would receive $100 every month when gas prices are $4.00 or more.

Some states including Idaho, Georgia, Indiana, and New Mexico have already approved direct aid for American families in various amounts. Maine, Hawaii, Minnesota, New York, and Kentucky governors have proposed their own payments to individuals. California Governor Gavin Newsom has proposed free public transportation in addition to direct payments.

 

Although the inflation of gas prices coincides with Russia’s invasion of Ukraine, the inflation actually started earlier this year due to supply chain issues caused by the COVID-19 pandemic.

The rising gas prices in the domestic and international markets advance a substantial threat to individual wallets, but more importantly, to our long-term dependency on the finite supply of petroleum.