U.S. President Donald Trump said he supports a temporary suspension of the federal gasoline tax amid a sharp rise in fuel prices.
According to Trump, the tax could be suspended “for as long as appropriate.” The measure concerns the federal levy of 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel fuel. The revenue is currently used to fund road infrastructure projects.
The tax suspension cannot be introduced by a unilateral White House decision: it requires congressional approval. Republican Senator Josh Hawley has already said he will introduce legislation for a 90-day suspension of federal gasoline and diesel taxes.
The proposal emerged after the average price of gasoline in the United States rose to $4.52 per gallon—the highest level since 2022. The increase has been linked to the conflict surrounding Iran and disruptions in the oil market, including instability around the Strait of Hormuz, through which a significant share of global oil supplies normally passes.
The idea also carries political significance ahead of the midterm elections: high gasoline prices directly affect American households and fuel voter dissatisfaction. At the same time, even supporters of the tax suspension acknowledge that the federal levy represents only a small portion of the final price consumers pay at the pump.
Opponents and skeptics warn that a tax holiday could undermine funding for road repairs and infrastructure projects. According to Reuters estimates, the federal fuel tax generates roughly $2.5 billion per month for transportation needs. Senate Republican leader John Thune stopped short of endorsing the initiative, saying that restoring the normal operation of global oil routes would be a more reliable way to reduce prices.