The Trump administration is considering temporarily suspending the federal gas tax amid soaring prices.
WASHINGTON — President Donald Trump said Monday he wants to suspend the federal gas tax Pump prices soar.
Trump told CBS News in a phone interview He wants to suspend the 18.4-cent-per-gallon gas tax and the 24.4-cent-per-gallon diesel tax “for a period of time.”
But according to multiple media outlets including CBS and CBS Axiossuspending the federal gas tax requires action by Congress.
Trump’s remarks came a day after U.S. Energy Secretary Chris Wright said in an interview that the Trump administration is “open to all ideas,” including suspending the gas tax. NBC’s “Meet the Press.”
The president told CBS News reporter Nancy Cordes on Monday that he thinks suspending the federal gas tax is “a good idea.”
“Yes, we will eliminate the gas tax for a period of time and when gas prices come down, we will gradually restore it,” the president said, Cordes reported.
For every gallon of gasoline sold in the United States, the federal tax is 18.4 cents. According to the U.S. Energy Information Administration. This tax has been in place since 1993.
Most states impose additional taxes on fuel. As of July 2024, the average sales tax per gallon of gasoline is 32.61 cents and diesel is 34.76 cents. Some states have recently suspended or considered suspending taxes to provide relief amid high natural gas prices.
Indiana and Georgia both temporarily eliminated gas taxes to combat the war’s impact on prices.
Last Wednesday, Indiana Governor Mike Braun suspended the state’s 36-cent natural gas excise tax for 30 days. Georgia has not had a gas tax since March, after Gov. Brian Kemp suspended the 33-cent excise tax for 60 days.
Global natural gas prices have soared since the United States and Israel attacked Iran on February 28. Conflict and subsequent wars in the region have led to instability in the region, which is an important part of the global oil market.
The U.S. and Iran’s blockade of the Strait of Hormuz, through which about 20% of oil passes, has been one of the biggest disruptions to global oil markets.
As of Monday, the national average retail price for a gallon of regular gasoline was $4.52. According to AAA. As of February 26, just before the Iranian attack, the national average retail price of a gallon of natural gas was $2.98. In just over two months, this price has increased by more than 50%.
When asked on “Meet the Press” if gas prices would fall back below $3 during the peak summer travel season in about six weeks, Wright sidestepped the answer but initially responded with some optimism.
However, Wright repeatedly emphasized that war is difficult to predict and it may take time for the global oil market to stabilize.
Asked again about oil prices falling to or below $3 or that prices could rise higher or even over $5 a gallon, Wright said he “can’t predict that” and declined to speculate.
Wright said “this administration supports every step we can take to lower prices at the pump and lower prices for Americans,” but stopped short of committing to how they would be implemented.
