Trump wants to suspend the federal gas tax as prices soar amid war with Iran
TL;DR
President Trump proposes a temporary suspension of the federal gas tax as the war in Iran continues, driving oil prices higher. He indicated the tax could be reinstated once gas prices decrease.
Key points
- Trump proposes suspending the federal gas tax.
- The war in Iran has lasted 11 weeks.
- Gas prices have exceeded $6 a gallon.
Gas prices over $6 a gallon are displayed at a Mobil station on May 4 in Los Angeles, California. Justin Sullivan/Getty Images
Justin Sullivan/Getty Images
President Trump says he wants the gas tax to be temporarily suspended as the war in Iran extends into its 11th week and keeps oil prices elevated.
He told CBS News Monday morning he wants the tax suspended "for a period of time" and would want it reintroduced "when gas goes down."
Asked by reporters in the Oval Office later in the day how long the gas tax would be suspended, the president responded, "'Til it's appropriate."
Suspending the gas tax would require an act of Congress. Currently, the tax is 18.4 cents per gallon of gas and 24.4 cents per gallon of diesel.
Regular gasoline cost just under $3 per gallon on average before the U.S. bombed Iran. Now, the average cost per gallon has soared by more than 50 percent to $4.52, according to AAA.
Blockades imposed during the Iran war have stalled the passage of oil tankers through the Strait of Hormuz, causing gas prices to spike. Around one-fifth of the world's crude oil usually travels through that strait.
The potential suspension of the gas tax is a tacit acknowledgment from the White House of the toll that high gas prices have taken on American consumers. Eight in ten Americans say gas prices are straining their budgets, including overwhelming majorities of Democrats, independents, and Republicans alike, according to the latest NPR/PBS News/Marist poll.
In addition, 63 percent of Americans say they blame Trump "a great deal" or "a good amount" for those higher gas prices. That includes more than 6 in 10 independents and nearly one-third of Republicans.
Q&A
Why does Trump want to suspend the federal gas tax?
Trump aims to suspend the federal gas tax to alleviate the financial burden on consumers as oil prices rise due to the ongoing war in Iran.
How long does Trump propose to suspend the gas tax?
Trump suggests the gas tax suspension would be temporary, lasting until gas prices decrease.
What impact does the war in Iran have on gas prices?
The war in Iran has contributed to elevated oil prices, which in turn has caused gas prices to soar above $6 a gallon in some areas.
