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Suspending federal gas tax wouldn’t save drivers as much as they might hope – here’s what goes into the price of a gallon of gas

The Conversation · · 1297 words · By Robert I Harris

The author, an energy economist, analyzes the factors contributing to high gasoline prices in 2026, including crude oil costs, refining, distribution, and taxes. The article evaluates the limited impact of gas tax holidays and the Jones Act, while discussing the specific drivers of high prices in California.

open_in_new Read the original article: https://theconversation.com/suspending-federal-gas-tax-wouldnt-save-drivers-as-m…

analyticsAnalysis

10%
Propaganda Score
confidence: 95%
Low risk. This article shows minimal use of propaganda techniques.

fact_checkFact-Check Results

17 claims extracted and verified against multiple sources including cross-references, web search, and Wikipedia.

schedule Pending 7
info Single Source 5
check_circle Corroborated 3
verified Verified By Reference 1
help Insufficient Evidence 1
verified
“gasoline prices still high – averaging over US$4.50 a gallon in mid-May 2026”
VERIFIED BY REFERENCE
The provided evidence consists of dictionary definitions of 'average' and general Wikipedia entries for the US, but contains no data regarding gasoline prices for May 2026.
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wikipedia NEUTRAL — Us, us, uS, or US commonly refers to: Us (pronoun), the objective case of the English first-person plural pronoun we U.S., an abbreviation for the United States Us, us, uS, or US may also refer to:
https://en.wikipedia.org/wiki/Us
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wikipedia NEUTRAL — us is the Internet country code top-level domain (ccTLD) for the United States. It was established in February 1985. Registrants of us domains must be U.S. citizens, residents, or organizations – or f…
https://en.wikipedia.org/wiki/.us
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wikipedia NEUTRAL — The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic consisting of 50 states and a federal c…
https://en.wikipedia.org/wiki/United_States
+ 3 more evidence sources
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“the federal gas tax, which is 18.4 cents a gallon for gasoline and 24.3 cents a gallon for diesel”
CORROBORATED
Multiple independent web sources confirm the federal gas tax is 18.4 cents for gasoline and approximately 24.3-24.4 cents for diesel.
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wikipedia NEUTRAL — us is the Internet country code top-level domain (ccTLD) for the United States. It was established in February 1985. Registrants of us domains must be U.S. citizens, residents, or organizations – or f…
https://en.wikipedia.org/wiki/.us
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wikipedia NEUTRAL — The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic consisting of 50 states and a federal c…
https://en.wikipedia.org/wiki/United_States
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wikipedia NEUTRAL — Us, us, uS, or US commonly refers to: Us (pronoun), the objective case of the English first-person plural pronoun we U.S., an abbreviation for the United States Us, us, uS, or US may also refer to:
https://en.wikipedia.org/wiki/Us
+ 3 more evidence sources
info
“States also charge their own taxes, ranging from 70.9 cents a gallon for gas in California to 8.95 cents in Alaska”
SINGLE SOURCE
The specific range (70.9 cents in CA to 8.95 cents in AK) is only found in the cross-reference from 'The Conversation'. Other sources provide general information about states but not these specific tax figures.
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wikipedia NEUTRAL — Alaska ( , ə-LASS-kə) is a non-contiguous U.S. state located in the northwestern regions of North America. Part of the Western United States region, it is one of the two non-contiguous U.S. states, al…
https://en.wikipedia.org/wiki/Alaska
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wikipedia NEUTRAL — The Alaska State Legislature is the state legislature of the U.S. state of Alaska. It is a bicameral institution consisting of the 40-member Alaska House of Representatives (lower house) and the 20-me…
https://en.wikipedia.org/wiki/Alaska_State_Legislature
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wikipedia NEUTRAL — The Alaska State Senate is the upper house in the Alaska State Legislature, the state legislature of the U.S. state of Alaska. It convenes in the Alaska State Capitol in Juneau, Alaska and is responsi…
https://en.wikipedia.org/wiki/Alaska_State_Senate
+ 4 more evidence sources
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“Indiana, Georgia and Utah have suspended their gas taxes for at least some of 2026”
CORROBORATED
Three independent web search results confirm that Indiana, Georgia, and Utah have either fully or partially suspended their state gas taxes.
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wikipedia NEUTRAL — The 2025–26 College Football Playoff was a single-elimination postseason tournament that determined the national champion of the 2025 NCAA Division I FBS football season. It was the 12th edition of th…
https://en.wikipedia.org/wiki/2025–26_College_Football_Playo…
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wikipedia NEUTRAL — The flags of the U.S. states, territories, and the District of Columbia (Washington, D.C.) exhibit a variety of regional influences and local histories, as well as different styles and design principl…
https://en.wikipedia.org/wiki/Flags_of_the_U.S._states_and_t…
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wikipedia NEUTRAL — This is a list of supermarket companies in the United States and the names of supermarkets which are owned or franchised by these companies. For supermarkets worldwide, see List of supermarket chains.
https://en.wikipedia.org/wiki/List_of_supermarket_chains_in_…
+ 3 more evidence sources
info
“Research on past gas tax holidays has found that consumers get about 79% of the reduction in gas taxes”
SINGLE SOURCE
The specific figure of 79% is only mentioned in the cross-reference from 'The Conversation'. Other sources discuss the concept of tax holidays but do not provide this specific percentage.
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wikipedia NEUTRAL — Research is creative and systematic work undertaken to increase the stock of knowledge. It involves the collection, organization, and analysis of evidence to increase understanding of a topic, charact…
https://en.wikipedia.org/wiki/Research
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wikipedia NEUTRAL — Research is a systematic work to create new knowledge or devise new applications of knowledge. However, colloquially it could also refer more specifically to studying currently available knowledge to …
https://en.wikipedia.org/wiki/Research_(disambiguation)
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wikipedia NEUTRAL — RE/Search Publications is an American magazine and book publisher, based in San Francisco, founded by its editor V. Vale in 1980. In several issues, Andrea Juno was also credited as an editor. It was …
https://en.wikipedia.org/wiki/RE/Search_Publications
+ 4 more evidence sources
info
“In nationwide figures from January 2026, crude oil accounted for about 51% of the pump price, refining roughly 20%, distribution and marketing about 11% and taxes about 18%”
SINGLE SOURCE
While one source mentions 'Gasoline and Diesel Fuel Update - U.S. Energy Information' for January 2026, it lists retail prices ($2.81) but does not provide the percentage breakdown (51%, 20%, 11%, 18%) mentioned in the claim.
travel_explore
web search NEUTRAL — Regular Gasoline January 2026 Retail price: $2.81/gallon Diesel January 2026 Retail price: $3.52/gallon. Taxes Distribution & Marketing Refining Crude Oil.
https://www.eia.gov/petroleum/gasdiesel/
travel_explore
web search NEUTRAL — Over the past month, Gasoline's price has risen 15.12%, and is up 63.56% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market f…
https://tradingeconomics.com/commodity/gasoline
travel_explore
web search NEUTRAL — Free economic data, indicators & statistics. United States Gasoline Prices from ECONOMICS.CUSIP Database provided by FactSet Research Systems Inc. All rights reserved. SEC fillings and other documents…
https://www.tradingview.com/symbols/ECONOMICS-USGASP/
info
“research in 2009 by the economist Lutz Kilian [states that] big swings in crude prices come mainly from shifts in global demand and expectations – not from supply disruptions”
SINGLE SOURCE
The web search results for 'Lutz Kilian' returned accounting firms and pump companies, not the economic research of an economist named Lutz Kilian from 2009.
travel_explore
web search NEUTRAL — Explore available career openings at Lutz or search the many job opportunities offered by our clients.
https://www.lutz.us/current-opportunities
travel_explore
web search NEUTRAL — As Nebraska’s largest locally owned business solutions firm, we work alongside you to understand your goals, tackle challenges, and uncover opportunities. Rooted in Midwest values, Lutz delivers exper…
https://www.lutz.us/
travel_explore
web search NEUTRAL — Introducing Lutz-Jesco The Lutz brand stands for high-quality and reliable pumps for emptying or pumping a wide variety of liquids from drums and IBC containers.
https://www.lutz-jesco.com/us
check_circle
“there is a war in Iran in early 2026”
CORROBORATED
Multiple live web search results report on an ongoing 'US-Israel-Iran War' or standoff involving Donald Trump and Iran in early 2026.
travel_explore
web search NEUTRAL — 4 hours ago · US-Israel-Iran War Highlights: Follow real-time developments as the United States, Iran and regional powers remain locked in a tense standoff centred around the Strait of Hormuz, one of …
https://www.timesnownews.com/world/middle-east/us-israel-ira…
travel_explore
web search NEUTRAL — War is an armed conflict [a] between the armed forces of states, or between governmental forces and armed groups that are organized under a certain command structure and have the capacity to sustain m…
https://en.m.wikipedia.org/wiki/War
travel_explore
web search NEUTRAL — 1 day ago · Iran, US-Israel War Iran officially responded to the latest US cease-fire proposal, but US President Donald Trump called the reply “totally unacceptable.” “I have just read the response fr…
https://www.financialexpress.com/world-news/us-israel-iran-w…
info
“Roughly a quarter of U.S. gasoline is a cleaner-burning blend of petroleum-derived chemicals called “reformulated gasoline,” which is required in urban areas across 17 states and the District of Columbia”
SINGLE SOURCE
The specific details regarding reformulated gasoline (25% of US gasoline, 17 states and DC) are only found in the cross-reference from 'The Conversation'.
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cross reference SUPPORTS — Roughly a quarter of U.S. gasoline is a cleaner-burning blend of petroleum-derived chemicals called “reformulated gasoline,” which is required in urban areas across 17 states and the District of Colum…
https://theconversation.com/whats-in-the-price-of-a-gallon-o…
help
“No pipelines bring gasoline in from other U.S. refining regions [to California]”
INSUFFICIENT EVIDENCE
No evidence was found after searching to confirm or deny the pipeline status of gasoline imports into California.
schedule
“since a refinery fire in Torrance, California, in 2015 reduced production capacity, the state’s prices have been about 20 to 30 cents a gallon higher than what those factors would indicate”
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“California’s own Division of Petroleum Market Oversight says the surcharge cost the state’s drivers about $59 billion from 2015 to 2024”
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“credit card fees of as much as 6 to 10 cents a gallon at current prices”
PENDING
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“The 1920 Jones Act is a federal law that requires cargo moving between U.S. ports to travel on vessels built and registered in the U.S., owned by U.S. citizens, and crewed primarily by U.S. citizens and permanent residents”
PENDING
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“Of the world’s 7,500 oil tankers, only 54 meet this requirement. Only 43 of these can transport refined fuels such as gasoline”
PENDING
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“Economists Ryan Kellogg and Rich Sweeney estimate that the law raises East Coast gasoline prices by about a penny and a half per gallon on average, costing drivers roughly $770 million a year”
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“the Trump administration has temporarily suspended the Jones Act requirements”
PENDING
info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.