President Donald Trump said on Monday he would support temporarily suspending the federal gasoline tax to lower costs for drivers [1].
The proposal comes as the U.S. economy faces volatility from rising fuel prices triggered by the war in Iran [2]. Because gasoline taxes are a significant component of the cost per gallon, a suspension would act as a direct subsidy to consumers at the pump.
Trump made the announcement during a press briefing in Washington, D.C. [3]. "I think we should suspend the federal gas tax until the price comes down," Trump said [4]. He said, "I support suspending the federal gas tax" [5].
The economic pressure stems from a conflict in Iran that began in February 2026 [6]. The geopolitical instability has led to the closure of the Strait of Hormuz, a critical maritime chokepoint that accounts for about 20% of the world's oil [6]. This disruption has caused fuel prices to climb sharply across domestic markets.
While the president focused on gasoline, other federal fuel levies remain in place, such as the federal diesel tax which stands at 24.4 cents per gallon [7].
There is disagreement among analysts regarding the effectiveness of such a move. Some reports suggest suspending the tax could lower fuel prices at the pump [8]. However, other analysts said the suspension would have only a modest impact on the final price consumers pay [9].
Trump said to reporters he would support the temporary measure until prices stabilize [4].
“"I think we should suspend the federal gas tax until the price comes down,"”
The proposal highlights the administration's attempt to mitigate the domestic economic fallout of the Iran conflict. By targeting the federal gas tax, the president is seeking a high-visibility win for consumers, though the actual relief may be limited by the scale of global oil price spikes caused by the loss of 20% of global supply through the Strait of Hormuz.
