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Legislative NewsFederal LevelKennedy, Barrasso, colleagues introduce Pay Less at the Pump Act to scrap...

Kennedy, Barrasso, colleagues introduce Pay Less at the Pump Act to scrap tax on American energy

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Washington (February 12, 2026) – Senator John Kennedy (R-La.) today joined Sen. John Barrasso (R-Wyo.) and eight colleagues in introducing the Pay Less at the Pump Act, which would repeal an unnecessary tax that raises gas prices for Americans and hurts Louisiana’s energy economy.

“Americans remember when President Biden’s stupid Green New Deal policies sent gas prices through the roof, and we owe it to them to get rid of any harmful taxes and fees that could lead to that happening again. The Pay Less at the Pump Act would scrap an unnecessary tax on American energy and help lower the cost of living for families,” said Kennedy.

“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. 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,” said Barrasso.

The bill would target the Superfund Petroleum Excise Tax, which applies to American oil refining and petroleum products and is passed on to consumers in the form of higher gas prices. Repealing the tax would help lower fuel costs for families, small businesses, and farmers while strengthening domestic energy production.

Sens. James Lankford (R-Okla.), Marsha Blackburn (R-Tenn.), John Cornyn (R-Texas), John Hoeven (R-N.D.), James Risch (R-Idaho), Cynthia Lummis (R-Wyo.), Tom Cotton (R-Ark.), and Mike Lee (R-Utah) also cosponsored the legislation.

Rep. Mike Carey (R-Ohio) introduced the companion bill in the U.S. House of Representatives.

“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. 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,” said Carey.

American Fuel and Petrochemical Manufacturers and the American Petroleum Institute support the Pay Less at the Pump Act.

“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,” said Aaron Ringel, Vice President of Government Relations, American Fuel and 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,” said Kristin Whitman, Senior Vice President of Government Relations, American Petroleum Institute.

Full text of the bill is available here.

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