Trump vows to pause federal gas tax after Iran war boosts US fuel prices to four-year high | US news
Donald Trump has vowed to suspend the US federal gas tax in a bid to ease pressure on Americans after the US-Israeli war against Iran led to a sharp rise in fuel prices.
The US president told reporters on Monday that his administration would seek to pause the tax “until it is appropriate” as drivers count the cost of the increase in oil prices in the two months since US and Israeli forces attacked Iran.
At 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel, the federal gas tax collects about $500 million each week for the federal government.
Trump says suspending it ‘great idea’ he told CBS News On Monday. “Yes, we will eliminate the gas tax for a period of time and phase it back in when gas becomes scarce.”
He later confirmed the idea in a public speech at the White House, acknowledging that the gas tax was a small percentage of the increased costs.
National average gasoline prices reached $4.52 per gallon on Monday, near their highest level since 2022, according to AAA; a year ago it was $3.14 per gallon.
Rising fuel costs come amid an affordability crisis in the US; This is the biggest concern of voters who are under pressure on the prices of daily necessities ahead of this year’s midterm elections. People across the country told the Guardian they were cutting back on essentials as fuel costs rose.
Suspending the tax requires congressional action. Republican lawmakers said they would immediately introduce legislation to suspend the tax. Republican senator Josh Hawley of Missouri said he would introduce legislation on X, and Republican Anna Paulina Luna of Texas said she would introduce a bill to the House of Representatives on the issue “in light of Trump’s recent statements.”
“American families need this relief on gas prices,” Luna said. “My office will work directly with President Trump to ensure we deliver this victory to the American people.”
Oil prices have continued to rise since Trump over the weekend called Iran’s response to US peace proposals “completely unacceptable.”
The largest oil and gas companies have made huge profits from these rising fuel prices. Analysis for the Guardian found that the world’s 100 largest oil and gas companies “earned more than $30 million in unearned profits every hour in the first month of the US-Israeli war in Iran”.
