President Trump said Monday he would move to suspend the federal gas tax as petrol prices surge to levels not seen since 2022, driven by escalating tensions with Iran. The move comes as Americans face sharp increases at the pump and an affordability squeeze becomes a central issue heading into midterm elections.
The national average for gasoline hit $4.52 per gallon on Monday, a $1.38 jump from $3.14 a year earlier. The spike accelerated following military action by the US and Israel against Iran in late February.
Trump told reporters the tax suspension would remain in place until oil markets stabilize. "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 said in an interview with CBS News, calling the idea "a great idea." He repeated the commitment during public remarks at the White House.
The federal gas tax currently stands at 18.4 cents per gallon for gasoline and 24.4 cents for diesel, generating approximately $500 million in weekly revenue for the federal government. Trump acknowledged the tax represents only a modest share of total fuel costs but framed relief from it as worthwhile nonetheless.
Implementing the suspension requires congressional approval. Republican lawmakers moved swiftly to introduce legislation. Senator Josh Hawley of Missouri announced on X that he was filing a bill, while Representative Anna Paulina Luna of Texas said she would introduce similar language in the House. Luna called the proposal "a win for the American people," indicating the GOP would coordinate with the White House to advance the measure.
Energy market volatility has intensified since Trump branded Iran's response to US peace proposals "totally unacceptable" over the weekend, sending oil prices climbing further. Major oil and gas companies have capitalized on the price surge, with analysis showing the world's 100 largest producers captured more than $30 million in excess profits each hour during the first month of hostilities.
Fuel costs have emerged as a pressure point in household budgets across the country. Citizens report cutting spending on basic necessities as prices remain elevated, reflecting widespread frustration with affordability challenges that will likely shape voter sentiment in the midterm races ahead.
Author James Rodriguez: "Suspending the gas tax reads like a quick political win, but without solving the underlying geopolitical instability driving prices upward, the relief is temporary theater while oil companies bank historic margins."
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