President Donald Trump said his administration is pursuing a temporary suspension of the federal gasoline tax as fuel prices continue climbing during the ongoing conflict involving Iran and shipping concerns in the Middle East.
By yourNEWS Media Newsroom
President Donald Trump said Monday that his administration is seeking a temporary halt to the federal gas tax in response to rising fuel costs tied to the ongoing war involving Iran and escalating instability surrounding global oil shipments.
During a CBS News interview, Trump said the proposed suspension would remain in effect until gasoline prices begin declining.
“And yep, 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,” Trump said. “We’ll be doing something on that.”
The current federal excise tax adds 18.4 cents per gallon to gasoline purchases and 24.4 cents per gallon to diesel fuel. Any suspension of the federal tax would require congressional approval.
Lawmakers in Congress have historically resisted proposals for a federal gas tax holiday despite periods of elevated fuel prices.
Fuel prices have risen sharply since the Iran conflict escalated on Feb. 28, with AAA reporting the national average price for gasoline surpassed $4.52 per gallon on Sunday.
Energy market analysts have warned prices may continue climbing as tensions remain high around the Strait of Hormuz, one of the world’s most critical oil shipping corridors. Iran has continued issuing threats related to shipping access through the waterway as the conflict develops.
Trump also criticized Tehran’s latest response to a U.S. peace proposal, saying Iranian officials had offered limited concessions tied to their nuclear program.
According to Trump, the proposal from Iran was “very stupid” and did not go far enough.
The president’s comments followed remarks made Sunday by Energy Secretary Chris Wright, who indicated the administration would support suspending the federal gas tax if the move helps reduce costs for consumers.
“All measures that can be taken to lower the price at the pump and lower the prices for Americans, this administration is in support of,” Wright said during an appearance on NBC’s “Meet the Press.”