Trump Pushes To Suspend Federal Gas Tax To Lower Gas Prices

 President Donald Trump announced that he supports temporarily suspending the federal excise tax on gasoline to provide relief to drivers facing elevated fuel prices. The move would require approval from Congress and is being discussed amid ongoing global tensions that have driven up oil costs.

The federal tax on gasoline currently stands at 18.4 cents per gallon, a rate that has remained unchanged since 1993. This includes the main excise tax and a small fee for the Leaking Underground Storage Tank Trust Fund. A separate 24.4-cent-per-gallon tax applies to diesel fuel. According to the U.S. Energy Information Administration, these federal levies help fund the Highway Trust Fund, which supports road and bridge construction and maintenance nationwide.

The national average price for regular gasoline is $4.52 per gallon, according to AAA data. That figure reflects a sharp increase tied to supply disruptions from the conflict involving Iran. Suspending the federal gasoline tax would lower pump prices by approximately 18.4 cents per gallon, assuming the full amount is passed through to consumers, a common outcome for excise tax changes.

At current levels, that would bring the national average down to roughly $4.34 per gallon. For a typical passenger vehicle with a 15- to 20-gallon tank, the savings would amount to about $2.76 to $3.68 per fill-up. Over a month of average driving, a household could see modest relief of around $10–$20, depending on mileage and fuel efficiency. The impact would be similar for diesel users, with a potential 24.4-cent reduction per gallon.

Energy Secretary Chris Wright indicated the administration is "open to all ideas" that could lower prices for consumers and businesses. Trump described the suspension as "a great idea" when asked by reporters, adding that it should remain in place "until it’s appropriate." Senator Josh Hawley has introduced legislation to implement the pause, and lawmakers from both parties have previously expressed support for similar short-term measures during periods of high fuel costs.

Whether the measure advances will depend on congressional action. If passed, any suspension would likely be temporary, with lawmakers needing to address the lost revenue through general funds or other offsets to protect infrastructure projects.

Drivers can track local prices through resources like AAA’s daily fuel reports. For now, the White House and Congress continue weighing options as Americans manage higher costs at the pump.