IInflation, and fuel price inflation in particular, has become public enemy number one in most parts of the world.
The actions that governments are implementing or planning to implement go to extremes that were hard to imagine before.
The newest and perhaps the most aggressive is the one I propose today Joe Biden. The US president is proposing at least a three-month suspension of federal fuel taxes (currently 18.4 cents a gallon – 3.78 liters – on gasoline and 24 cents on diesel).
The proposal, which the US press has dubbed “tax credits,” would free Americans from paying federal fuel taxes all summer long, when they will be in effect until September.
In the United States, fuel is subject to a double tax: the federal tax, which is identical for the entire country, and the state-specific tax, which can vary widely. For example, in California, it is 58 cents on the dollar while in Alaska it is only eight cents.
Inflation expectations in the United States, despite being a major producer of crude oil, are no more promising than in Europe as the current record price per gallon is hovering around $5, but expectations are that it could reach $6.2 during the summer, double what it was It was exactly a year ago.
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