Donald Trump has pledged to suspend the US federal gas tax in an effort to ease the financial burden on Americans, following a sharp rise in fuel prices after the US-Israeli war against Iran. The president told reporters on Monday that the administration would look to pause the tax “till it’s appropriate”, as drivers contend with the surge in oil costs over the past two months.
The federal gas tax stands at 18.4 cents per gallon for petrol and 24.4 cents for diesel, generating around $500m each week for the federal government. Speaking to CBS News, Trump described the suspension as “a great idea”, adding: “We’re going to take off the gas tax for a period of time, and when gas goes down, we’ll let it phase back in.” He later confirmed the proposal in public remarks at the White House, acknowledging that the tax represents only a small portion of the overall rise in costs.
The national average petrol price hit $4.52 per gallon on Monday, approaching its highest level since 2022, according to the American Automobile Association. That compares with $3.14 per gallon a year ago, with the average having risen by more than a dollar since late February. The increase comes amid a broader affordability crisis in the US, a key concern for voters ahead of this year’s midterm elections, with families reported to be cutting back on basic necessities as fuel costs climb.
Suspending the tax will require congressional action, and Republican lawmakers have already moved to introduce legislation. Josh Hawley, a Republican senator from Missouri, said on X that he was introducing a bill, while Anna Paulina Luna, a Republican from Texas, said she would introduce a measure in the House of Representatives “in light of Trump’s recent remarks”. Luna said: “American families need this relief on gas prices. My office will be working directly with President Trump to ensure we deliver this win for the American people.”
Oil prices have continued to climb since Trump called Iran’s response to US peace proposals “totally unacceptable” over the weekend. The rising fuel costs have coincided with large profits for major oil and gas companies. Analysis conducted for the Guardian found that the world’s top 100 oil and gas firms banked more than $30m every hour in unearned profit during the first month of the US-Israeli war in Iran.
