Trump Announces Gas Tax Pause as US Fuel Prices Soar
Andy Hirschfeld / Al Jazeera English
President Donald Trump announced a temporary suspension of the 18-cent federal gas tax to combat rising fuel prices. The move requires congressional approval and faces mixed reactions from lawmakers. Gas prices have surged since the US-Israel conflict with Iran began in late February.
President Donald Trump announced on May 12 that he would suspend the 18-cents-per-gallon federal tax on gasoline, as US fuel prices continue to climb amid tensions related to the ceasefire with Iran. Trump said the suspension would last "until gas prices come down" and would then be phased back in gradually.
Speaking to CBS News, Trump stated: "Yes, we're going to stop the gas tax for a period of time, and then when gas prices come down, we'll let it come back slowly." He did not specify an exact end date.
The federal gas tax currently generates about $2.5 billion annually for road infrastructure. The suspension is beyond White House authority and requires approval from Congress. Senator Josh Hawley, an ally of Trump, said he would introduce a bill on the matter on May 12. Meanwhile, Senator Mark Kelly had already proposed a suspension through October back in March.
Gas prices in the US have surged since the US-Israel conflict with Iran erupted on February 28. According to the American Automobile Association, the average price for a gallon of regular gas now stands at $4.52, compared to $2.98 when the airstrikes began. Brent crude oil rose $3.17 to $104.46 per barrel, while WTI hit $98.32 per barrel.
Separately, Trump said there are no plans for airline relief despite budget carrier Spirit Airlines ceasing operations after 34 years, citing "recent geopolitical events leading to a large and prolonged increase in fuel prices." United Airlines has also raised fares by 20% due to skyrocketing jet fuel costs.
