Gas prices soared above $4 a gallon in the U.S. for the first time since 2008 after Russia invaded Ukraine in late February. The national average price of gas per gallon is $4.236, up from $3.543 a month ago, according to the American Automobile Association.
As countries around the world sanctioned Russia and President Joe Biden banned the import of Russian oil, gas prices rose significantly. As a result, multiple Congressmen called for the U.S. to become more energy independent, including by increasing oil production in West Texas, in order to solve the issue.
Recent proposals in Congress have sought to ease the issues at the pump another way: through stimulus checks and gas rebates. So far, three bills have been filed offering various remedies. Here are five things to know about them.
One proposal could offer families up to $300 per month
One bill would offer families up to $300 a month for the rest of 2022 as long as gas stays above an average of $4 a gallon nationally. The bill, titled the Gas Rebate Act, would offer $100 a month to single filers making up to $75,000 and joint filers making up to $150,000, plus an added $100 each for up to two dependents.
The bill was introduced by Reps. Mike Thompson (D-CA), John Larson (D-CT) and Lauren Underwood (D-IL).
“I am proud to be working with Reps. Larson and Underwood to introduce this legislation to provide middle-class Americans with monthly payments to ease the financial burden of this global crisis,” Thompson said in a press release.
Another proposal could offer Americans $360 per year
The Big Oil Windfall Profits Tax Act would “curb profiteering” from oil companies and give Americans relief at the gas pump, according to a press release from co-sponsor of the bill Rep. Ro Khanna (D-CA). The bill would place a per-barrel tax equal to 50% of the difference between the current price of a barrel of oil and the pre-pandemic average price per barrel between 2015 and 2019 for companies that import or produce 300,000 barrels a day.
If oil were $120 per barrel, the act would raise $45 billion, resulting in a quarterly rebate of equal to $240 per year for single filers and $360 per year for joint filers.
“As Russia’s invasion of Ukraine sends gas prices soaring, fossil fuel companies are raking in record profits,” Khanna said in a press release. “These companies have made billions and used the profits to enrich their own shareholders while average Americans are hurting at the pump.”
A third proposal would create a monthly, refundable tax credit for gas
Under the Stop Gas Price Gouging Tax and Rebate Act, oil companies would pay a one-time 50% windfall profit tax on any adjusted taxable income in 2022 that exceeds 110% of their average ATI during pre-pandemic levels between 2015-2019. The revenue from that tax would then be returned to consumers in the form of a monthly, refundable tax credit that would be phased out by income.
The amount of money Americans might receive through this act was not specified in a press release from co-sponsor Rep. Peter DeFazio (D-OR).
California is proposing its own stimulus payments
California Gov. Gavin Newsom proposed an $11 billion relief program to help Californians recover from the rising gas prices. Registered vehicle owners would be eligible for $400 per month for up to two registered vehicles. The package also includes free public transit for three months.
Unlike the national bills proposed, the stimulus payments would not have an income cap.
The rise in gas prices could lead to up to $2,000 more in expenses this year
Rising gas prices could cost Americans up to $2,000 more in expenses this year, according to reporting from CBS News. On top of an estimated additional $1,000 in annual expenses related to inflation, this could leave people with about $3,000 less this year to spend on other items.