President Donald Trump has pledged to suspend the US federal gas tax in an effort to ease the financial burden on Americans as fuel prices surge to their highest levels in four years. The sharp increase follows the US-Israel war on Iran, which has driven oil prices upward.
Trump's Announcement
Speaking to reporters on Monday, Trump stated that his administration would look to pause the tax "till it's appropriate." The federal gas tax currently stands at 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel, generating approximately $500 million each week for the federal government.
"It's a great idea," Trump told CBS News. "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 reiterated the proposal during public remarks at the White House, acknowledging that the gas tax represents only a small fraction of the overall price increase.
Rising Fuel Costs
The national average price for gasoline reached $4.52 per gallon on Monday, nearing its highest level since 2022, according to AAA. This marks a significant increase from $3.14 per gallon a year ago. The surge in fuel costs comes amid a broader affordability crisis in the US, which is a top concern for voters ahead of the midterm elections. Many Americans are cutting back on basic necessities as fuel prices rise.
Congressional Action Required
Suspending the federal gas tax requires congressional approval. Republican lawmakers have already signaled their support, with Senator Josh Hawley of Missouri announcing plans to introduce legislation. Representative Anna Paulina Luna of Texas stated she would introduce a bill in the House "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 and Profits
Oil prices have continued to climb after Trump described Iran's response to US peace proposals as "totally unacceptable" over the weekend. Major oil and gas companies have reported substantial profits amid the price increases. An analysis by 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."
