Grassley Targets Oil Industry Over High Prices
US Senator Chuck Grassley has expressed his willingness to vote for temporarily suspending the federal tax on gasoline and diesel to provide relief to farmers and drivers. However, he believes that the oil industry could lower prices on its own without government intervention.
The current federal tax on gasoline is 18.4 cents a gallon, while it's higher at 24.4 cents a gallon for diesel. Grassley suggests tying US diesel prices to the domestic supply rather than relying on global prices, which are currently high due to the global price of oil.
He argues that if the government can enforce an embargo on exports of US diesel, it could help American farmers and the trucking industry by keeping prices lower. Grassley also disputes the oil industry's claim that an embargo would lead to reduced production and higher prices in the US.