Sharon Bernstein and Rich McKay

(Reuters) – The rise in U.S. retail gasoline price to new record highs has prompted lawmakers and governors in many states to look at reducing fuel taxes, and increasing pressure on federal officials to follow suit.

This is a response to state government concerns that the sudden rise in fuel prices could harm motorists and chill local economies. Federal efforts to lower costs have not been sufficient.

“Due to a total failure of leadership in Washington, we are actively working with the Georgia House and Senate to quickly move legislation that will temporarily suspend the state’s motor fuel tax,” said Georgia Governor Brian Kemp, a Republican. A 29.1 percent per gallon state gas tax is in effect.

California’s governors are considering making similar moves, along with lawmakers in Tennessee, New York City, New York, Maine and Michigan. A coalition of six Democratic governors – from Colorado, Michigan, Minnesota, Pennsylvania, New Mexico, and Wisconsin – also sent a letter this week to U.S. Congressional leaders, asking them to support a bill to lift the nation’s 18.4 cent per gallon federal tax.

“Money saved at the pump translates into dollars back in consumers’ pockets for groceries, childcare, rent, and more,” they wrote.

Inflation is expected to rise further over the next few months as U.S. consumer price inflation soared in February.

Pump prices struck $4.38 on average nationwide on Thursday, according to motorist group AAA, driven in part by rising global demand and the disruption of Russian oil supplies since Moscow’s invasion of Ukraine.

Joe Biden’s administration, which declared a ban against Russian oil imports last week, attempted to reduce rising energy prices through the orchestration of emergency reserve stockpile release in collaboration with other consumers nations.

The White House stated that it was considering additional steps to mitigate the effects on U.S. gasoline consumers. Officials from the administration have requested domestic and international energy producers to quickly drill more oil to stabilize market conditions.

However, taxes make up a large portion of the prices at the pump. These include the federal 18.4 percent gas tax and state or local levies, which can range from less than 10 cents up to almost 60 cents per gallon.

The Urban Institute reports that in 2019 the combined revenue of motor fuel taxes from state and local governments was $52 billion. The Urban Institute estimates that most of this money goes to transport spending. This includes bus, metro, and road construction.

On Wednesday, the Republican-led Michigan legislature said it would vote to suspend for six months 27.2c per gallon state fuel tax. Mike Shirley, the Republican leader of Michigan’s Senate Majority, said that it would cost drivers approximately $750 millions.

State lawmakers in New York from both the Democratic and Republican parties have called for the suspension of New York’s 48c per gallon gas tax. Governor Kathy Hochul stated Monday that she was speaking to her budget office regarding the possible budget impacts.

Gavin Newsom of California, a Democrat said Tuesday that his office was working on a proposal for Californians to receive a tax reduction to offset rising fuel prices.