Federal travelers shouldn't expect relief from surging gas prices anytime soon. According to the General Services Administration, the mileage reimbursement rate is capped at 32.5 cents right now, and is unlikely to change this year.
GSA sets the reimbursement rate for federal employees. The rate cannot exceed the rate established by the Internal Revenue Service, which raised its standard mileage rate from 31 cents per mile to 32.5 cents per mile on Jan. 1.
The high cost of gas these days prompted GSA to ask the IRS to review its rate, but the tax agency declined, a GSA spokesperson said.
Despite the recent rise in gas prices, they probably haven't gone up enough to result in a significant mileage reimbursement rate increase anyway, the spokesperson said.
GSA officials estimate that the price per gallon must rise about 30 cents to result in a 1 cent per mile change in the reimbursement rate. Since current prices have risen about 30 cents per gallon from what they were when the current rate was set, any IRS adjustment would likely be very small.
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