U.S. President Donald Trump has announced plans to suspend the federal gasoline tax in response to rising fuel prices triggered by the ongoing war involving Iran.
Speaking at the White House while responding to reporters, Trump said the suspension would remain in place “till it’s appropriate,” noting that even small tax cuts could ease consumer pressure.
“It’s a small percentage, but you know it’s still money,” he said.
Federal fuel taxes in the United States currently stand at 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel, according to the U.S. Energy Information Administration.
However, any suspension would require approval from Congress, where Republicans hold only a narrow majority in both chambers.
Trump ally Senator Josh Hawley said he would introduce supporting legislation, while Republican lawmaker Anna Paulina Luna also pledged to bring forward a bill within the week.
Fuel prices in the U.S have surged in recent months, with gasoline and diesel reportedly up by about 50 per cent since late February following the escalation of tensions with Iran.
Analysts linked the spike to disruptions in global oil supply routes, including increased instability around the Strait of Hormuz, a critical channel for global energy transport.
On Monday, average U.S. fuel prices stood at $4.52 cents per gallon for gasoline and $5.64 for diesel, according to AAA data.
If implemented, the federal tax suspension would reduce pump prices by roughly four per cent, though state-level fuel taxes would remain unchanged.
Economists said the move could offer short-term relief but would not fully offset broader global supply pressures driving the price increases.
