President Barack Obama has introduced a new oil tax.
A new oil tax has been proposed by President Barack Obama, and this tax, if passed, is expected to result in a spike in fuel prices for motorists.
According to a report from Market Watch, the proposed $10-per-barrel tax will be part of the budget request that Obama will send to Capitol Hill next week. The tax is intended to be paid by oil companies and to be phased in over five years, but it is not likely that oil companies would absorb the cost of that tax; it will be reflected in the prices motorists pay to fill up.
The Market Watch report indicates that the tax would result in an increase in fuel prices by 20-25 cents per gallon, and the tax would grow over time.
The tax would not only impact gasoline prices, but also diesel, jet fuel, heating oil and more.
President Obama believes that this tax will bring about a number of advantages, and intends the money to be used toward clean transportation projects, but industry officials feel that this is the worst time for this tax to be introduced.