Trump Proposes Temporary Federal Gas Tax Suspension as Oil Prices Jump Amid Iran Tensions
Last update: May 11, 2026
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Americans could soon see relief at the pump as Donald Trump signals plans to temporarily suspend the federal gasoline tax in response to rising fuel prices linked to escalating tensions involving Iran.
CBI News reports that US President Donald Trump has announced plans to suspend the federal gasoline tax as consumers face sharply rising energy costs amid global instability tied to escalating tensions involving Iran.
Speaking at the White House on Monday in response to reporters, Trump said the proposed suspension would remain in effect “till it’s appropriate,” emphasizing that even small tax reductions can ease financial pressure on consumers.
“It’s a small percentage, but you know it’s still money,” he said.
Currently, the US federal fuel tax stands at 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel, according to the US Energy Information Administration (EIA).
However, implementing such a suspension would require approval from Congress, where Trump’s Republican Party holds only a narrow majority in both chambers.
Supporters in Congress have already begun moving to act on the proposal. Senator Josh Hawley, a Trump ally, said he would introduce related legislation, while Republican Representative Anna Paulina Luna also pledged to bring forward a bill within the week.
Fuel prices in the United States have climbed significantly in recent months, with gasoline and diesel reportedly rising by about 50% since late February amid disruptions in global oil markets and heightened geopolitical tensions in the Middle East.
One major factor impacting global supply is reduced stability around the Strait of Hormuz, a key shipping route responsible for transporting a significant share of the world’s oil and natural gas.
As of Monday, the average US price for regular gasoline stood at $4.52 per gallon, while diesel averaged $5.64, according to AAA data.
If approved, suspending the federal fuel tax could reduce pump prices by roughly 4%. However, state-level fuel taxes—averaging about 32.61 cents per gallon for gasoline and 34.76 cents for diesel—would remain unchanged.
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