MAINE, USA — In an effort to stem the steep price hikes in per-gallon rates for Mainers, Rep. Laurel Libby, R-Auburn, has proposed suspending a 30-cents per gallon tax until the end of the year.
"It came out of hearing friends, family, constituents, [and] everyone in my life talking about the high prices of gas," Libby said.
Included in that price are gasoline taxes. Right now, that consists of 30 cents to the state and 18 cents for a federal gas tax. That's a total of more than 48 cents for every gallon of gas put in the tank.
Where, exactly, does that money go? In Maine's case, 77 percent of it, or about $230 million, goes to the Maine Department of Transportation's highway fund to fix roads and bridges.
But even as gas prices rise, the tax stays the same.
"About 60 percent is the actual physical crude, and the rest is all the taxes, transportation, and refining," Jonathan Rubin, professor of economics at UMaine, said.
The Russian war in Ukraine is the most prominent reason for the increase in gas prices.
"The price that we pay at the pump and the stock market are kind of the same. They don't like volatility," Dan Goodman from AAA of Northern New England said.
He added this is the time of year refineries do maintenance, which contributes to costs. Producers are also switching to the "summer blend" of gas, and there's an increase in demand as more people are getting out and traveling.
Goodman added April is usually the most expensive time to get gas because of these factors, and this year it is magnified because of the price of crude oil going up.
Libby said if Maine does pass her emergency bill and suspend the gas tax, it could benefit tourism.
"It's a great way to encourage folks to come and visit Maine this summer, and it's a terrific way to give people relief at the pump when they desperately need it," she said.
Maine DOT said suspending the gas tax for that long would mean a cut of about $173 million from the highway fund, meant to keep up the same roads and bridges those tourists, as well as other drivers, use.
Maine's congressional delegation has discussed oil production in the wake of the war in Ukraine, too.
U.S. Rep. Jared Golden, D-Maine, said last week in a statement, "This should include stronger sanctions against all Russian banks and those who do business with them. In addition, I am once again calling on President Biden to work with American energy producers to ramp up domestic production to protect the American people from rising gas and oil prices resulting from the conflict in Ukraine and sanctions against Russia."
U.S. Sen. Susan Collins, R-Maine, and a group of bipartisan senators sent a letter to President Biden to urge him to increase energy independence.
Democratic U.S. Rep. Chellie Pingree's office said in a statement to NEWS CENTER Maine:
"Our dependence on foreign oil is a national security issue. When we strengthen our energy independence, we weaken the leverage President Putin thinks he has over us. Members of Congress on both sides of the aisle, including myself, want to ban Russian oil imports. But let me be clear. This is not an opening for Republicans to advance an anti-climate agenda and keep the U.S. hooked on fossil fuels for years to come. If we make transformational investments in renewable energy now, Americans will not be susceptible to these volatile swings in crude oil prices over the long term, nor will our nation be devastated by a dependence on fossil fuel in the face of an undeniable climate crisis."