H.R. 7919: Gas Prices Relief Act of 2026

This bill, known as the Gas Prices Relief Act of 2026, proposes a temporary reduction in federal gasoline taxes. It is intended to address rising gas prices by suspending certain taxes related to gasoline from the date the bill is enacted until October 1, 2026. Specifically, the bill would:

1. Tax Reduction

The bill establishes a tax holiday for gasoline, meaning:

• The federal gasoline tax rate will be set to zero for gasoline that is removed, entered, or sold after the enactment of the law and before October 1, 2026.
• Additional financing rates for the Leaking Underground Storage Tank Trust Fund will also not apply to the gasoline covered by this zero-rate tax.

2. Funding for Trust Funds

Despite the reduction in gasoline taxes, the bill mandates that the federal government (specifically the Secretary of the Treasury) shall transfer funds from the general fund to the:

• Highway Trust Fund
• Leaking Underground Storage Tank Trust Fund

These transfers will be equal to the amount lost due to the tax reduction, ensuring these funds are maintained even with the suspension of taxes on gasoline sales.

3. Consumer Benefits

The legislation encourages that the benefits from the tax reduction should be passed on to consumers in the following ways:

• Consumers should see immediate reductions in gasoline prices due to the elimination of federal taxes.
• Fuel producers and dealers are expected to adjust their prices accordingly to reflect the tax holiday.
• If producers and dealers do not pass on the savings, they may face monetary penalties at least equal to the amount of the tax reduction that was not passed on to consumers.

4. Enforcement

The Secretary of the Treasury is tasked with ensuring compliance with these provisions, using any necessary authority to guarantee that the intended benefits of the tax reductions reach consumers.

Relevant Companies

• XOM (Exxon Mobil Corporation): As one of the largest oil and gas companies, it may be impacted by changes in federal taxation affecting its pricing strategies and profit margins.
• CVX (Chevron Corporation): Similar to Exxon, Chevron stands to be impacted in terms of its pricing mechanisms in response to reduced federal taxes on gasoline.
• TSO (Tesoro Corporation): This refinery and marketing company may adjust its pricing strategies due to the temporary suspension of gasoline taxes.