By Jarrett Renshaw

WASHINGTON, (Reuters) – President Joe Biden is short on policy options that would bring down record-setting U.S. gas prices ahead of summer driving season when millions drive to vacation.

Jen Psaki, White House spokesperson said Tuesday that the President, our national security team and economic team were working extra hard right now to assess and evaluate a variety of domestic options.

Officials from the White House have stated publicly that all options were on the table. This includes a gasoline tax holiday, or gas cards, which would offer rebates for consumers, potential deals to lift sanctions against Iran and Venezuelan crude oil exports, and possibly a relaxation of Jones Act, which requires domestic cargo to be transported on American-made tanks using union labor.

According to two people familiar with administration thinking, private officials claim that all options are political and complicated. They also believe none of the alternatives may lower gas prices.

“They are perusing the menu and can’t find anything they want to eat,” said Stephen Brown, a veteran oil lobbyist who consults energy companies.

After Russia’s invasion in Ukraine, U.S. fuel prices hit an all-time high last week. This could spell doom for the country’s economy. Even though fuel prices continue to rise around the globe, Republicans within the U.S. Congress are blaming Biden’s energy policies. They believe it will boost their chances in the midterm elections of November.

Biden is confronted with an anger electorate that sees the cost of the pump more often than the suffering of Ukrainians,” stated Ed Hirs (an energy economist at University of Houston).

The policy options may help to lower gasoline prices, but they won’t do enough to reduce the rise in crude oil prices that are the true problem.

The record-breaking price of retail gasoline has been lowered from $4.331 on Friday, but it remained at $4.316 per g on Tuesday according to American Automobile Association data. Even though it fell substantially from its March 7th high of $139 per barrel, the price of gasoline remained around $110 per barrel.

Republicans and other Republicans have criticised negotiations with Venezuelan and Iranian to get their oil back on the international market. They also claimed that the White House has given in to dictators.

TAX HOLIDAY

Although it wouldn’t significantly lower prices, a federal gasoline tax holiday could affect financing of infrastructure projects that are dependent on the revenue. The federal gas tax would be waived if a motorist bought 10 gallons at the current price. This will result in a savings of less than $2.

Many states impose higher gas taxes, such as Pennsylvania’s 57.6c/gallon (the highest in the United States) and California’s 53.3c/gallon. Some states like Maryland and Florida have begun to lift their gas taxes.

According to multiple interviews, lawmakers asked U.S. officials at refineries for their opinions on the proposed gas tax holiday. The responses were negative.

We are telling them it won’t have much impact on gasoline prices. A top American refiner official stated that the only way to reduce gas prices is by lowering oil prices.

Find out MORE About ETHANOL

The White House has been pushing a bipartisan coalition of U.S. Farm Belt legislators to remove the ban on gasoline containing higher amounts of ethanol, known as E15. This fuel is more affordable than standard E10. E15, which is banned in summer because of smog fears, has been opposed by White House climate officials.

The refining sector is also opposed to increasing ethanol consumption. This would cause an increase in demand for corn, at a moment when food prices continue to rise.

Psaki replied that E15 gasoline was available and “in the menu” when asked about it.

JONES ACT

Waiving Jones Act might help oil move to the East and West Coast refineries that do not have pipeline access. It could also anger labor unions. Washington temporarily took the initiative during times of emergency, such as Hurricane Katrina or when hackers closed down the biggest U.S. fuel pipe.

One refining source said that there is no way for the White House to do this. It has been done in the past, and it isn’t a problem.

GAS CARDS

According to an insider familiar with the discussion, the White House had considered offering gas cards for Americans to offset the high price of gasoline, but it was rescinded due to resistance from legislators who doubted its effectiveness.

Some feared that gas cards could be too complicated for the Internal Revenue Service, which would delay tax returns. Senior administration officials also raised fraud concerns by pointing out that gas cards had been taken from mailboxes.

“We are talking to congress about all ideas, all have a good and a bad,” the official said.