(NEXSTAR) – Energy Secretary Chris Wright said on Sunday that the Trump administration is considering the possible suspension of the federal gas tax amid soaring oil prices fueled by the war in Iran — a plan President Donald Trump voiced support for on Monday.
“I think it’s a great idea,” Trump said during a call to CBS News. “Yup, 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.”
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Gas prices have remained high since the closure of the Strait of Hormuz amid military action in Iran earlier this year. The president has, at times, claimed to be making progress toward resolving the conflict, but the ongoing blockage of the strait has led to higher crude oil prices and, therefore, rising prices at U.S. gas pumps.
Trump administration officials are now championing a suspension of the federal gas tax to help ease costs.
What is the federal gas tax, and how much is it?
Revenue collected from the federal gas tax is mainly used to support the Highway Trust Fund, which serves as a “dedicated source of funding for surface transportation,” according to the Department of Transportation. Projects funded by the Highway Trust Fund can include maintenance, construction and other transportation infrastructure initiatives.
The federal gas tax is currently 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel fuel. (Of those amounts, 1 cent per gallon is earmarked not for the Highway Trust Fund, but the Leaking Underground Storage Tank Fund, the Energy Information Administration explains.)
gas prices station ohio
A sign displays the prices of unleaded, premium, and diesel gasoline at a Speedway gas station in Columbus, Ohio, on May 11, 2026. (Brian Kaiser/Bloomberg via Getty Images)
As of Monday, the national average for a gallon of gasoline in the United States was $4.52, according to AAA analysts, although many states — and particularly those on the West Coast — have considerably higher averages. Suspending the federal gas tax could add up to significant savings for America’s motorists, though the price of a gallon would still be well above the Feb. 26 national average of $2.98, just before U.S. military action in Iran.
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A suspension of the federal gas tax, or a so-called “gas tax holiday,” would still need congressional approval before it could take effect. On the state level, however, some gas tax suspensions are already being implemented. In response to rising gas prices, Georgia and Indiana have suspended their gas taxes, while Utah has approved a plan to lower its tax. And in Oregon, residents will soon vote on whether to repeal an increase to their state gas tax that took effect last year.
Aside from a suspension of the gas tax, Energy Secretary Wright repeatedly said during a Sunday appearance on NBC News that he could not “make any predictions” as to when the prices of oil and gas would come back down, despite saying in March that there was a “very good chance” that gas would be under $3 per gallon by the summertime.
“I can’t make any predictions on oil prices or gasoline prices,” Wright said.
WMBD TV was first to report on this story. You can find the original story online at CIProud.com.
