Trump Proposes Temporary Suspension of Federal Gas Tax as Fuel Costs Surge

(MENAFN) US President Donald Trump said on Monday that he plans to temporarily remove the federal gasoline tax and later reinstate it once fuel prices ease, as Americans face rising costs at the pump amid the ongoing Iran war.

Speaking in a phone interview, he outlined the idea of suspending the tax for a limited period and bringing it back gradually when prices fall.

"And yep, 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," Trump told a media outlet in a phone interview. "But no, we're gonna, we'll, we'll be doing something on that. Yes."

The federal excise tax currently stands at 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel. However, any suspension of these taxes would require approval from Congress, which so far has shown limited appetite for such a move aimed at easing fuel costs.

Fuel prices have risen sharply since the start of the Iran war on Feb. 28, climbing by more than 50% and reaching over $4.52 per gallon on Sunday, according to data from automobile associations.

Market observers warn that prices could remain high for an extended period, pointing to disruptions linked to Iran’s continued restrictions on access to the Strait of Hormuz, a critical route for global oil and liquefied natural gas shipments.

Trump also commented on diplomatic developments, saying Iran’s latest reply to a US peace proposal included some adjustments to its nuclear program, though he dismissed them as insufficient.

"It’s still a very stupid proposal," he said.

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