S. 5530: Consumer Fuel Costs Relief Act

This bill would temporarily lower federal taxes on motor fuels and aviation fuels by setting the relevant tax rate to zero for fuel removed, entered, or sold from the date the bill becomes law through September 30, 2027.

In practical terms, this means:

• The federal excise tax on gasoline, diesel, and other taxable motor fuels would be suspended during that period.
• The federal fuel tax that supports the Leaking Underground Storage Tank Trust Fund would also be suspended for those fuels during that period.
• The bill would require the Treasury Department to transfer money from the general fund to the Highway Trust Fund, Airport and Airway Trust Fund, and Leaking Underground Storage Tank Trust Fund to make up for the lost fuel-tax revenue.

The bill also states that the tax savings should be passed on to consumers. It says fuel sellers, transportation fuel producers, airline service providers, and other dealers should reduce prices to reflect the tax cut. It directs the Treasury Department to use its authority to help ensure consumers get the benefit, and it instructs the Federal Trade Commission and the Commodity Futures Trading Commission to monitor oil, diesel, and gasoline markets for price gouging or market manipulation.

For aviation fuel, the bill says airlines and related sellers should pass along the tax reduction so passengers benefit from lower prices.

Relevant Companies

• XOM — Exxon Mobil could be affected through changes in demand, pricing, and margins related to fuel production and distribution.
• CVX — Chevron could be affected in a similar way through its oil refining and fuel sales businesses.
• COP — ConocoPhillips could be affected indirectly through changes in fuel market conditions and demand.
• MPC — Marathon Petroleum could be affected because it refines and sells transportation fuels that would be subject to the tax holiday.
• VLO — Valero Energy could be affected through its refining and fuel distribution operations.
• DVN — Devon Energy could be affected indirectly through fuel-market changes and broader energy pricing effects.
• DAL — Delta Air Lines could be affected because the bill targets aviation fuel taxes and could influence fuel costs for airlines.
• UAL — United Airlines could be affected for similar reasons through aviation fuel expense changes.
• AAL — American Airlines could be affected through changes in jet fuel costs and related pricing.
• LUV — Southwest Airlines could be affected by changes in aviation fuel costs.