Biden's 3-month gas tax holiday will reduce prices by 18 cents a gallon

President Biden plans to ask Congress on Wednesday to suspend the 18-cent-per-gallon federal gas tax until September, Fox Business reports.

As of Wednesday, the national average price of a gallon of regular gasoline stood at $4.96, up from $3.07 a year ago.

According to The Washington Post, economists were "lukewarm on the idea," while "lawmakers in both parties" expressed "skepticism." Pausing the gas tax will stimulate demand, which could drive the price of gas up even further. Great for oil companies — for consumers, perhaps not so much.

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A senior administration official said Biden is also "calling on states to suspend their gas taxes or else find other ways to deliver the same relief, such as consumer rebates or relief payments."

The official also clarified that this three-month tax holiday will not strip any money from the Highway Trust Fund, which uses federal gas tax revenue to finance highways and mass transit. Other revenue will be redirected to fill in the roughly $10 billion hole in the trust fund's budget, the official said.