H.R. 3768: Gas Prices Relief Act of 2025

This bill, known as the Gas Prices Relief Act of 2025, proposes a temporary suspension of federal taxes on gasoline. Here’s an overview of what the bill entails:

Tax Suspension

Starting from the enactment date of this Act until January 1, 2026, the bill will implement a zero tax rate on gasoline under the Internal Revenue Code. Specifically:

• The federal gasoline tax rate will be set to zero.
• The financing rate for the Leaking Underground Storage Tank Trust Fund will also not apply to gasoline during this period.

Funding for Trust Funds

Even though the taxes are suspended, the bill includes provisions to maintain funding for necessary trust funds:

• For the duration of the tax holiday, the Secretary of the Treasury will transfer funds from the general revenue to both the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund. These transfers are intended to replace the lost revenue from the suspended taxes.
• The transfers will ensure continued support for infrastructure (Highway Trust Fund) and environmental protection (Leaking Underground Storage Tank Trust Fund) despite the reduction in tax revenue.

Consumer Benefits

The bill states that the benefits of the tax reduction should be passed on to consumers:

• It expresses the policy of Congress that consumers should see immediate benefits from the tax reduction through lower gasoline prices.
• Producers and dealers of transportation fuels are encouraged to take necessary actions to reflect this reduction in their prices.

Enforcement

To ensure compliance, the Secretary has the authority to take appropriate measures to make certain that consumers receive the benefits of the tax reduction. This includes enforcement actions against producers or retailers that do not lower their prices accordingly.

Overall Impact

This legislation aims to temporarily lower gasoline prices by suspending federal taxes, while simultaneously ensuring that essential funds for infrastructure and environmental programs remain supported through federal transfers. The goal is to alleviate financial pressure on consumers during the specified period.

Relevant Companies

• XOM - Exxon Mobil Corporation: As a major oil and gas company, changes in gasoline tax could affect the pricing structure and competitive positioning of their gasoline sales.
• CVX - Chevron Corporation: Similar to Exxon, Chevron’s gasoline pricing may be influenced by the tax holiday, potentially impacting their revenues in the retail market.
• PSX - Phillips 66: This company, which operates refineries and markets transportation fuels, could see significant changes in consumer demand and pricing strategy due to the suspension of the gasoline tax.