Gas Prices Are Down, But Federal Employees’ Reimbursement Rate Goes Up

Drivers across the US are relieved to find lower gas prices at the pump. Federal employees can be even happier that they’re still getting a raise in their reimbursement for driving this year.

Gas prices have dropped 31% nationwide since June, but the General Services Administration reimbursement rate is still increasing by 2.7%.

For the first time since 2005, the GSA rate did not follow the trend of average gas prices, as a chart created by Josh Hicks shows.

In previous years, the GSA rate has been informed by the rate set by the IRS for taxpayers to use when calculating business travel deductions. Now the GSA has to match that rate exactly. Because gas prices rose significantly in the first half of 2014, the annual average price is higher than present conditions.

Even though oil costs are expected to continue to drop, the GSA’s hands are tied if they wanted to modify their rate to fit reality. And more of our taxpayer money is spent unnecessarily.

I guess it’s better than spending $300k studying how to ride a bike.