H.R. 10589: Consumer Fuel Costs Relief Act

This bill would temporarily lower federal taxes on motor fuels and aviation fuels. From the date the bill becomes law through September 30, 2027, the federal excise tax on taxable fuel would be set to zero. It would also suspend the small additional tax that normally goes into the Leaking Underground Storage Tank Trust Fund for those fuels.

What happens to the money the taxes would have raised

Even though the fuel taxes would be set to zero, the bill says the Treasury Department would move money from the general Treasury fund to the two trust funds that normally receive this revenue:

• the Highway Trust Fund, and
• the Leaking Underground Storage Tank Trust Fund.

The transfers would be equal to the amount of tax revenue that would otherwise have been collected and credited to those funds.

What the bill expects from businesses and agencies

The bill says it is Congress’s policy that consumers should immediately see the benefit of the tax cut. It states that:

• fuel producers and other dealers should lower motor fuel prices to reflect the tax reduction,
• aviation gasoline producers, airlines, and other dealers should pass the savings through to passengers, and
• businesses that do not pass along the savings could face monetary penalties of at least the amount that should have been passed through.

It directs the Secretary of the Treasury to use available authority to make sure consumers receive the benefit of the tax reduction. It also directs the Federal Trade Commission and the Commodity Futures Trading Commission to monitor oil, diesel, and gasoline markets for price gouging and market manipulation.

Who would be affected

The bill would affect most people and businesses that buy gasoline, diesel, or aviation fuel during the covered period. It would also affect federal revenue flows, since the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund would no longer receive those fuel tax receipts in the usual way, even though they would be backfilled from general Treasury funds.

Relevant Companies

• XOM — Exxon Mobil could be affected through changes in fuel tax treatment and downstream fuel pricing, since it sells refined petroleum products and aviation fuels.
• CVX — Chevron could be affected in a similar way through its refined products and fuel supply businesses.
• COP — ConocoPhillips could be indirectly affected by changes in fuel-market pricing and demand.
• MPC — Marathon Petroleum could be directly affected because it is a major refiner and fuel supplier.
• VLO — Valero Energy could be directly affected because it refines and markets motor fuels and aviation fuels.
• DINO — HF Sinclair could be directly affected as a refiner and fuel marketer.
• GS — Goldman Sachs is unlikely to be directly impacted operationally, but commodity-market oversight and price dynamics could affect trading activity; impact would be indirect.
• DAL — Delta Air Lines could benefit from lower aviation fuel costs if the tax reduction is passed through.
• UAL — United Airlines could benefit from lower aviation fuel costs if the tax reduction is passed through.
• AAL — American Airlines could benefit from lower aviation fuel costs if the tax reduction is passed through.
• LUV — Southwest Airlines could benefit from lower aviation fuel costs if the tax reduction is passed through.