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President Donald Trump said Monday he wants to suspend the federal gas tax.
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Trump told CBS News in a phone interview he would like to pause the federal 18.4 cents a gallon tax on gasoline and 24.4 cents a gallon tax on diesel for a period of time.
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Suspending the federal gas tax would require an act of Congress.
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In March, Democratic Senators Mark Kelly and Richard Blumenthal introduced legislation to suspend the federal gas tax through Oct. 1.
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Following Trump's comments on Monday, Republican Senator Josh Hawley said he would introduce legislation to suspend the gas tax.
Chris Wright, U.S. Energy Secretary
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U.S. Energy Secretary Chris Wright said the administration was open to considering a suspension of the gas tax during his Meet the Press interview.
Donald Trump, President
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President Trump told CBS News reporter Nancy Cordes on Monday that he thinks it’s "a great idea" to suspend the federal gas tax.
Donald Trump, President
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"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," the president said.
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For every gallon of gasoline sold in the U.S., 18.4 cents is federally taxed.
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That federal tax rate has been in place since 1993.
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The majority of states impose an additional tax on fuel.
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As of July 2024, the average state sales tax per gallon was 32.61 cents on gasoline and 34.76 cents on diesel.
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Indiana and Georgia have temporarily removed their state gas excise taxes.
Mike Braun, Governor
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Last Wednesday, Indiana Governor Mike Braun suspended the state's 36-cent excise tax on gas for 30 days.
Brian Kemp, Governor
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Since March, Georgia Governor Brian Kemp has suspended the state's 33-cent excise tax on gas for 60 days.
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Gas prices have surged worldwide since the U.S. and Israel attacked Iran on Feb. 28.
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Conflict in the region led to instability in a crucial part of the global oil market.
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A U.S. and Iranian blockade at the Strait of Hormuz, where roughly 20% of global oil passes, has disrupted global oil markets.
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As of Monday, the national retail average price for a gallon of regular gasoline was $4.52.
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The national retail average price for a gallon of gasoline was $2.98 as of Feb. 26.
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That represents an increase of more than 50% in just over two months.
Chris Wright, U.S. Energy Secretary
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When asked whether gas prices could fall below $3 by the summer travel season, Wright expressed initial optimism but did not make a prediction.
Chris Wright, U.S. Energy Secretary
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Wright said that war is unpredictable and that it may take time for global oil markets to stabilize.
Chris Wright, U.S. Energy Secretary
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Wright said he can't make predictions about prices falling below $3 or rising above $5 per gallon and declined to speculate.
Chris Wright, U.S. Energy Secretary
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Wright said the administration supports taking all measures that can lower pump prices for Americans but did not specify how those measures would be enacted.
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President Trump said he will move to suspend the federal tax on gasoline to help Americans shoulder surging fuel prices caused by the Iran war.
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The president cannot suspend the federal tax on gasoline without congressional approval.
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Lawmakers from both parties have pushed for a gas tax suspension, saying it would provide relief for families and businesses that rely on vehicles for work, school, and errands.
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The federal gas tax provides more than $23 billion per year in revenue for federal highway and public transit programs.
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As gas prices spiked, the administration released millions of barrels of oil from the U.S. Strategic Petroleum Reserve.
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The administration temporarily lifted sanctions on some Russian and Iranian oil shipments already at sea.
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The U.S. is negotiating with countries reliant on Middle East crude to join a coalition to police the Strait of Hormuz.
Josh Hawley, Senator
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Republican Senator Josh Hawley said he will introduce legislation to suspend the gas tax when Congress reconvenes.
Anna Paulina Luna, Representative
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Representative Anna Paulina Luna said she will introduce a bill to suspend the federal gas tax in light of Trump’s remarks.
John Thune, Senate Majority Leader
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Senate Majority Leader John Thune said he has not been a fan of a gas tax suspension but will hear out colleagues who support it.
John Thune, Senate Majority Leader
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Thune said he prefers to reopen the Strait of Hormuz to normalize gas prices without legislation.
John Thune, Senate Majority Leader
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Thune said suspending the gas tax would create a significant shortfall in the Highway Trust Fund with future implications.
Rand Paul, Senator
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"Instead of suspending the tax, we should suspend the war," Senator Rand Paul said.
John Cornyn, Senator
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Senator John Cornyn said he wants to know how roads and bridges would be funded if the tax is lifted.
John Cornyn, Senator
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"A temporary suspension to get through this sort of bumpy time because of the uncertainty about energy prices, I could live with that," Senator John Cornyn said.
Donald Trump, President
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President Trump previously said he is willing to accept higher fuel prices to prevent Iran from obtaining a nuclear weapon.
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A bill sponsored by Democratic Senators Richard Blumenthal and Mark Kelly would suspend the federal gas tax through Oct. 1.
Chris Pappas, Representative
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A similar measure was sponsored in the House by Representative Chris Pappas.
Richard Blumenthal, Senator
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"Trump’s war of choice with Iran is driving up gas prices across the country — and Americans shouldn’t have to bear the additional economic burden of Trump’s reckless decision making," Senator Richard Blumenthal said.
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