Gas Tax Holiday

According to James Hamilton, a professor of economics at the University of California at San Diego, the benefits of a temporary tax moratorium would probably go to oil companies rather than consumers. He said states that suspend gas taxes are able to respond to rising demand more efficiently than the country as a whole, because gasoline supplies can be easily transferred from one state to another.

“Prices would certainly rise to the market-clearing level,” Hamilton said. “I would expect the price to go back to very close to where it was before, in which case consumers would not see any benefit.” - The Washington Post