President Donald Trump said on Monday that he supports temporarily suspending the federal gas tax as fuel prices continue to climb during the ongoing conflict with Iran.
Speaking to reporters, Trump said he would back a pause on the tax “until it’s appropriate” and predicted gasoline and oil prices would fall sharply once the conflict ends.
“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,” Trump said, NBC News reported.
Earlier in the day, Trump told CBS News that suspending the gas tax was “a great idea.”
“We’re going to take off the gas tax for a period of time, and when gas goes down, we’ll let it phase back in,” he said, per NBC.
The federal gasoline tax currently stands at 18.4 cents per gallon, while diesel is taxed at 24.4 cents per gallon, according to the U.S. Energy Information Administration. The revenue helps fund federal highway and public transit programs and generates more than $23 billion annually.
Any suspension would require congressional approval because the President cannot unilaterally pause the tax.
Fuel prices have surged since fighting involving Iran intensified and shipping disruptions in the Strait of Hormuz affected global oil markets. About one-fifth of the world’s crude oil typically moves through the strategic waterway.
AAA reported on Monday that the national average gasoline price had reached $4.52 per gallon, up roughly 50 cents over two weeks and more than $1.50 higher than the average price before the conflict began.
Even with the federal tax removed, drivers would still pay about $4.33 per gallon based on current averages.
Energy Secretary Chris Wright signaled over the weekend that the administration was open to suspending tariffs as part of broader efforts to reduce energy costs.
“We are working every day to offset this rise in prices because of a critical conflict in Iran to drive prices down and we’re open to all such ideas,” Wright said during an appearance on NBC’s “Meet the Press.”
Republican lawmakers moved quickly after Trump’s comments. Sen. Josh Hawley of Missouri announced on X that he planned to introduce legislation to suspend the gas tax. Rep. Anna Paulina Luna of Florida also said she would introduce a bill in the House.
“American families need this relief on gas prices,” Luna wrote. “My office will be working directly with President Trump to ensure we deliver this win for the American people.”
Democrats had already proposed similar legislation earlier this year. Sen. Mark Kelly of Arizona, Sen. Richard Blumenthal of Connecticut, and Rep. Chris Pappas of New Hampshire introduced measures in March that would suspend the federal gas tax through Oct. 1.
After Trump endorsed the idea Monday, Pappas responded on X: “This should have happened months ago.”
“Let’s pass it this week,” he added.
Analysts have cautioned that consumers may not see the full benefit of a tax suspension at the pump. The Bipartisan Policy Center previously estimated gas prices could decline by roughly 10 to 16 cents per gallon, rather than the full 18.4-cent federal tax, because suppliers could absorb part of the savings.
A temporary suspension would also reduce revenue flowing into the Highway Trust Fund, which supports transportation infrastructure projects nationwide.
