Trump Considers Federal Gas Tax Suspension as Prices Rise

President Donald Trump said Monday he wants to temporarily suspend the federal gas tax as Americans continue facing sharply higher fuel prices linked to the ongoing war involving Iran.

Speaking at the White House, Trump said gasoline prices would eventually “drop like a rock” once the conflict ends.

Trump says gas tax could be reduced temporarily

When asked whether he planned to suspend the federal gas tax, Trump told reporters:

“Yeah, I’m gonna reduce until the — let me tell you, as soon as this is over with Iran, as soon as it’s over, you’re going to see gasoline and oil drop like a rock.”

The president later clarified the suspension would remain in place “until it’s appropriate.”

The federal gas tax currently stands at:

• 18.4 cents per gallon for regular gasoline
• 24.4 cents per gallon for diesel fuel

Any suspension would require approval from Congress.

Gas prices continue climbing nationwide

Fuel costs have surged worldwide during the months-long conflict centered around the Strait of Hormuz.

The strategic waterway remains heavily disrupted, limiting global oil shipments and pushing crude prices sharply higher.

According to AAA data, the national average gas price in the United States reached approximately $4.52 per gallon Monday.

That marks an increase of more than $1.50 per gallon since the war began.

Republican lawmakers back proposal

Josh Hawley announced Monday that he plans to introduce legislation supporting a temporary gas tax holiday.

The proposal echoes a similar effort attempted in 2022 after fuel prices spiked following Russia’s invasion of Ukraine.

At the time, then-President Joe Biden requested a temporary suspension of the federal gas tax, though Congress ultimately rejected the proposal.

Critics argued the savings for consumers would be relatively small and would not meaningfully reduce inflation.

Trump admits savings would be limited

Trump acknowledged Monday that suspending the gas tax would not dramatically lower costs for drivers.

“It’s a small percentage, but it’s still money,” the president said.

Analysts note the federal gas tax represents only a fraction of current fuel prices, which remain elevated mainly because of global oil supply disruptions.

Iran negotiations remain stalled

Trump also addressed the latest ceasefire negotiations involving Iran, describing current diplomatic talks as extremely fragile.

The president said the ceasefire is “on life support” after rejecting Tehran’s latest counterproposal over the weekend.

“I would call it the weakest right now,” Trump said. “After reading that piece of garbage they sent us. I didn’t even finish reading it.”

Trump says Iran cannot have nuclear weapons

Despite criticizing Iran’s proposal, Trump insisted he still has a strategy to end the conflict.

“You know, a lot of people said, ‘Well, does he have a plan?’ Yeah, of course I do have a plan. I have the best plan ever,” Trump told reporters.

He later added that any agreement must prevent Iran from obtaining nuclear weapons.

“The plan is, they cannot have a nuclear weapon,” Trump said.

The White House continues preparing for Trump’s upcoming diplomatic trip to China, where officials expect Iran and global energy markets to dominate discussions.