Trump backs temporary suspension of US gas tax amid rising fuel prices

Speaking in an interview with CBS News, Mr Trump said the tax could be removed “for a period of time” and then restored once fuel prices begin to fall again.

The federal gasoline tax currently adds 18.4 cents to every gallon of petrol sold in the United States, while diesel fuel is taxed at 24.4 cents per gallon. The money is mainly used to fund highways, bridge repairs and transport infrastructure projects across the country.

The proposal comes after fuel prices surged following the ongoing conflict involving Iran and disruption in the Strait of Hormuz, one of the world’s most important oil shipping routes. Analysts say fears over attacks on oil tankers and shipping delays have pushed global crude oil prices sharply higher.

According to the American Automobile Association, the average price of petrol in the United States has risen to about $4.52 per gallon. Before the conflict escalated earlier this year, prices were below $3 per gallon in many parts of the country.

In some states, especially parts of California, petrol prices have reportedly climbed above $6 per gallon, increasing pressure on the White House to respond.

Energy Secretary Chris Wright said the administration is “open to all ideas” to reduce costs for consumers and businesses. He said officials are also looking at other measures to ease pressure on energy markets.

However, the proposal faces political and economic challenges.

The president cannot suspend the federal gas tax on his own because it is set by federal law. Any change would need approval from Congress, and lawmakers have not yet agreed on a plan.

Republican Senator Josh Hawley has indicated he may introduce legislation supporting a temporary gas-tax holiday when Congress returns.

Economists are divided over how effective the policy would be.

Supporters say suspending the tax could provide immediate relief for commuters, delivery drivers and trucking companies during a period of high inflation. Several states, including Georgia and Indiana, have already temporarily reduced or suspended some state fuel taxes.

Critics argue the effect on prices would be relatively small because the main cause of rising fuel costs is global oil supply disruption rather than taxes alone. Some analysts also warn that oil companies or fuel retailers may not pass the full savings on to consumers.

There are also concerns about infrastructure funding.

The federal fuel tax generates tens of billions of dollars each year for the Highway Trust Fund, which pays for road construction and maintenance projects. Analysts estimate that suspending the tax for several months could reduce government transport revenues by billions of dollars.

The debate has become politically significant because fuel prices are closely watched by American voters and often affect public opinion about the economy.

The Trump administration is also dealing with wider concerns about inflation, shipping disruptions in the Gulf region and fears that prolonged instability in the Strait of Hormuz could further increase fuel and transport costs worldwide.

At present, no formal legislation has been passed, and the proposal remains under discussion in Washington.