President Trump stated on Tuesday that his administration is considering suspending the federal gasoline tax, as high fuel prices generate voter dissatisfaction one month before the midterm elections.
Federal Gas Tax Suspension Under Review at White House
President Trump told reporters at the White House on Tuesday that officials are weighing a suspension of the federal fuel levy. “We’re thinking about that,” Trump said when asked about pausing the tax. Any such suspension requires an act of Congress, as the president lacks the authority to pause the tax unilaterally. The federal levy stands at 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel, bringing in more than $23 billion annually for public transit and highway maintenance. Dropping the tax would reduce the price of regular gasoline by roughly 4%.
Voters Face High Fuel Costs Ahead of Midterm Elections
The evaluation of a tax suspension comes as voters grapple with elevated fuel costs ahead of the midterm elections. The national average for regular gasoline reached $4.3685 per gallon on Tuesday, according to AAA data, marking an increase of more than a dollar compared to the same time last year. When asked about the midterms, Trump expressed confidence that Republicans would perform well, attributing a positive shift to his rallies. “Prices are now coming way down,” Trump said, adding that oil prices will drop soon after the conclusion of the war. The president did not specify an end date for the conflict or outline a legislative path for passing a tax suspension through Congress.
Congressional Fuel Tax Suspension Bills Stall in Committee
Congressional efforts to suspend fuel taxes have stalled despite surging prices. In May, as the Iran war pushed energy costs upward, Senator Josh Hawley introduced the Gas Tax Suspension Act to eliminate federal taxes on non-aviation gasoline and diesel for 90 days. Representative Jeff Van Drew also proposed an 18-month suspension of the federal gas tax. Neither bill has seen legislative action since May, remaining in committee while diesel prices climbed to a record high of $6.52 per gallon on September 21.
State-Level Fuel Tax Relief Measures
With federal legislation stalled, several states have enacted their own relief measures to lower pump prices. Ohio lowered its state diesel tax rate to 0.0001 cents per gallon from October 4 through January 2. Georgia suspended its 33.3-cent gas tax and 37.3-cent diesel tax through October 29 under Governor Brian Kemp. Indiana Governor Mike Braun suspended a 7% gasoline use tax and a 37-cent excise tax while maintaining a 63-cent diesel tax coupled with a “red dye” diesel expansion. Utah Governor Spencer Cox lowered state levies by 6 cents through the end of the year, and Kentucky Governor Andy Beshear paused automatic inflation adjustments to fuel taxes.
Global Reserves and Executive Actions on Diesel
International and executive actions have also targeted energy costs. G-7 nations—including the UK, France, Germany, Italy, Canada, and Japan—agreed to release 100 million barrels of oil and diesel from strategic reserves. President Trump signed an executive order allowing truckers to purchase tax-free "red dye" diesel through December 31, broadening the use of fuel typically reserved for construction equipment and tractors.
Frequently Asked Questions About Fuel Tax Suspensions
How much would a federal gas tax suspension save drivers?
The federal tax adds 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel, which accounts for about 4% of the price of a gallon of regular gasoline.
Can President Trump suspend the federal gas tax without Congress?
No, any suspension requires an act of Congress, and the president cannot unilaterally pause the federal tax.
What was the peak price for diesel recorded by Commercial Carrier Journal?
Commercial Carrier Journal reported that a gallon of diesel reached a record high of $6.52 on September 21.
Which states enacted temporary fuel tax suspensions?
States including Ohio, Georgia, Indiana, and Utah implemented temporary tax waivers or rate reductions to lower fuel costs.