The price of a gallon of gas is prohibitively high for many Americans. There are places where you will pay more than $6 per gallon, but that depends on the state and local resources. Tap or click here for a hidden map feature that will save you money on fuel.

Things have gotten so bad that the US government wants to step in with much-needed financial relief. Similar to the stimulus checks during the COVID pandemic, there is talk of a gas stimulus to give relief to Americans.

Read on to see how this plan will work, who’s eligible, and how much you can expect to receive.

Here’s the backstory

While no one can agree on the right course of action, a broader view of the gas price situation can be examined by examining the incentives. Democratic Reps. Lauren Underwood, Mike Thompson and John Larson first proposed a break for drivers in March.

The proposed Gas Rebate Act of 2022 would be similar to previous incentive checks and set criteria to determine how much you get. In an initial statement, Thompson said, “We must work together on sound policy solutions to ease the financial burden my constituents are experiencing.”

Thompson cited Russia’s invasion of Ukraine as the reason for the higher prices. Unfortunately, the trio was unable to garner enough support in Congress and the plan has stalled for now. Congress may still feel the pinch of the COVID stimulus and be reluctant to release another program.

How much would you get?

The Gas Rebate Act of 2022 would cause some Americans to receive a $100 check for each remaining month of the year when the average price of gas is above $4 a gallon. If you have dependents, you can get another $100.

A sliding scale of your income is possible, with people earning less than $75,000 a year getting the full $100. You’ll see less of the discount if your income is more than that.

Under the proposed bill, here’s how the payments would be calculated:

  • $100 for single filers earning less than $75,000 and phased out up to $80,000.
  • $100 for joint filers earning less than $150,000 and phased out at $160,000.

While the proposed Gas Rebate Act of 2022 hasn’t kicked in yet, it hasn’t stopped some states from enacting their own relief plans.

Some states are looking at a gas tax holiday to relieve some of the pressure and lower prices. For example, California is temporarily eliminating its 13 percent diesel sales tax, and five other states have followed suit.

  • California has suspended sales tax on diesel and will give “inflation relief” checks of up to $1,050 per family.
  • North Carolina plans a one-time $200 check for all licensed senior drivers.
  • Chicago has its own system called The Chicago Moves plan. The city will give out 50,000 $150 prepaid gas cards and 100,000 $50 prepaid transportation cards.

Federal gas tax credits

The elimination of the gas tax is made possible by the Gas Tax Relief Act, which temporarily suspends the federal fuel tax. How long it will last is unclear. President Biden signed the bill into law by September. Others are lobbying for it to continue into early next year.

For consumers, that means a reduction of about 18.3 cents per gallon for gas and 24.3 cents for diesel.

Keep reading

Don’t fall for these gas scams at the pump

$100 for a tank of gas? Top 10 most expensive cars at the pump

Gas stimulus checks: Who qualifies and how much you could receive

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