Donald Trump has pledged to suspend the US federal gas tax in an effort to reduce financial pressure on Americans following a sharp rise in fuel prices triggered by the US-Israel war on Iran. The US president told reporters on Monday that his administration would look to pause the tax “till it’s appropriate”, as drivers grapple with the surge in oil prices over the two months since US and Israeli forces attacked Iran.
The federal gas tax stands at 18.4 cents per gallon for gasoline and 24.4 cents for diesel, generating approximately $500 million each week for the federal government. Suspending it was “a great idea”, Trump said in an interview with CBS News on Monday. “Yup, 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 during public remarks at the White House, acknowledging that the gas tax represents a small fraction of the overall rising costs.
The national average for gasoline prices reached $4.52 per gallon on Monday, nearing its highest levels since 2022, according to the American Automobile Association (AAA). This marks a significant increase from $3.14 per gallon a year ago. The rising fuel costs are occurring amid an affordability crisis in the United States, a top concern for voters ahead of this year’s midterm elections as they face squeezed budgets on everyday goods. People across the country have reported cutting back on basic necessities due to escalating fuel expenses.
Suspending the federal gas tax requires congressional action. Republican lawmakers quickly announced plans to introduce bills to enact the suspension. Josh Hawley, a Republican senator from Missouri, stated on X that he was introducing legislation, while Anna Paulina Luna, a Republican representative from Texas, said she would introduce a bill in the House of Representatives on the matter “in light of Trump’s recent remarks”. “American families need this relief on gas prices,” Luna said. “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 described Iran’s response to US peace proposals as “totally unacceptable” over the weekend. Major oil and gas companies have reported substantial profits as fuel prices have increased. An analysis for the Guardian found that the world’s top 100 oil and gas companies “banked more than $30 million every hour in unearned profit in the first month of the US-Israeli war in Iran”.
