Washington: U.S. President Donald Trump announced that he plans to temporarily suspend the federal gasoline tax of 18.4 cents per gallon “for a period of time,” citing sharp increases in fuel prices driven by the ongoing Iran conflict.
He said the suspension would remain until “gas goes down,” adding that it would be reinstated once conditions improve.
The proposal, which requires approval from the Republican-controlled Congress, comes as fuel costs in the United States have surged by more than 50% since the start of the Iran war on February 28.
According to the reports, the average price of gasoline has risen to $4.52 per gallon, the highest level since 2022. Analysts attribute the spike to disruptions in oil transport through the Strait of Hormuz, a critical global shipping route.
Energy Secretary Chris Wright said the administration is “open to all ideas” to reduce pump prices. Meanwhile, Senator Josh Hawley has proposed legislation to suspend the tax, while earlier Democratic efforts also sought temporary relief.
Trump also ruled out immediate airline bailouts, stating carriers were “doing not badly.” The proposal reflects growing concern over inflationary pressure on American consumers, with most households reporting strain from high fuel costs.
