WASHINGTON, DC – Today, U.S. Senator John Barrasso (R-Wyo.) and U.S. Representative Mike Carey (R-Ohio-15) introduced bicameral legislation to lower energy prices for American families by repealing the $12 billion “Superfund Tax” on American energy production.

The Pay Less at the Pump Act will repeal the “Superfund Tax” on crude oil and imported petroleum products that was reinstated in the Democrats’ 2022 reckless tax and spend bill. This tax leads to higher prices for families and businesses. When the long-expired tax was brought back, it was raised from its original 9.7 cents per barrel to a new rate of 16.4 cents per barrel. Additionally, the tax was indexed to inflation, meaning higher tax burdens in future years.

“Together with the Trump administration, Republicans are working to restore American energy dominance and reverse the Biden administration’s climate policies that drove up energy prices,” Sen. Barrasso said. “The Pay Less at the Pump Act builds on this success by repealing another out-of-touch energy tax that hurts Americans every time they go to fill up their gas tanks. This will lower prices at the pump for American families and make it easier for Wyoming’s energy producers to unleash energy production here at home.”  

“Cheaper energy translates into cheaper goods for Americans at every level of the supply chain, allowing families to keep more of their hard-earned cash,” Rep. Carey said. “The Pay Less at the Pump Act will lower costs and build on the more affordable future Republicans are creating with the Working Families Tax Cuts.”

Cosponsors of this legislation include U.S. Senators James Lankford (R-Okla.), Marsha Blackburn (R-Tenn.), John Cornyn (R-Texas), John Kennedy (R-La.), John Hoeven (R-N.D.), James Risch (R-Idaho), Cynthia Lummis (R-Wyo.), Tom Cotton (R-Ark.), and Mike Lee (R-Utah).

This bill has received support from the Petroleum Association of Wyoming, American Fuel & Petrochemical Manufacturers, and the American Petroleum Institute.  

“Wyoming producers already face some of the highest tax rates in the country. Further increasing the tax burden on Wyoming producers hurts businesses from the well pad to main streets across the state. We appreciate Senator Barrasso’s work to repeal this misguided policy and bring common sense solutions to reduce energy costs.” – Pete Obermueller, President of the Petroleum Association of Wyoming

“Eliminating this tax once and for all will save American consumers billions of dollars and remove an arbitrary penalty on both U.S. energy production and fuel manufacturing. With affordability top of mind for Americans this legislation provides a common sense solution. We appreciate Senator Barrasso’s continued steadfast leadership on these critical issues and his laser focus on supporting affordable, competitive American energy and manufacturing.”– Aaron Ringel, Vice President of Government Relations, American Fuel & Petrochemical Manufacturers

“Raising taxes on American energy undermines the industry’s ability to invest and deliver the affordable, reliable energy the world increasingly demands. We support Senator Barrasso and Rep. Mike Carey’s effort to repeal this misguided policy and refocus Congress on measures that strengthen U.S. energy investment, competitiveness and security.” – Kristin Whitman, Senior Vice President of Government Relations, American Petroleum Institute

Full text of the legislation can be found here.

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