President Donald Trump says he would support temporarily suspending the federal gasoline tax as fuel prices remain elevated across the country.
Speaking to reporters this week, Trump said he would back removing the federal gas tax “until it’s appropriate” as consumers continue dealing with higher fuel costs tied to global energy uncertainty and tensions involving Iran.
The current federal gasoline tax stands at 18.4 cents per gallon, while diesel fuel carries a federal tax of 24.4 cents per gallon. Any suspension would require approval from Congress.
Energy Secretary Chris Wright said over the weekend the administration remains open to multiple options aimed at reducing fuel costs for consumers.
Missouri Senator Josh Hawley introduced legislation Monday that would suspend both the federal gasoline and diesel taxes for 90 days. The proposal would also allow the president to extend the suspension for an additional 90 days if necessary.
Several lawmakers from both parties have voiced support for some form of temporary gas tax relief as fuel prices continue impacting transportation, freight and farm input costs.
The federal fuel tax helps fund highway and transportation infrastructure programs through the Highway Trust Fund, meaning any suspension could reduce billions of dollars in federal transportation revenue if extended for several months.
Analysts say even if the federal tax were suspended, retail fuel prices likely would not fall by the full amount because portions of the savings could remain within fuel distribution and supply channels.
National average gasoline prices have climbed sharply in recent months amid ongoing instability in global energy markets and concerns surrounding Middle East oil supplies.