Trump backs plan to pause US federal gasoline levy as pump prices climb

WASHINGTON (AP) — President Donald Trump said Monday that he intends to press for a pause on the federal levy on gasoline, framing the step as help for Americans facing steep pump prices linked to the war in Iran.

Trump cannot order that suspension on his own. Any change would need approval from Congress.

Members of both major parties have backed calls to halt the gas tax, arguing that households and firms that depend on cars and trucks for work, school, and daily errands need breathing room.

On Monday, the national average price for gasoline stood at US$4.52 a gallon, the AAA motor club reported. That figure is about 50 per cent above the average of just under US$3 a gallon recorded before Trump launched the war against Iran.

The federal charge is 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel. Those rates exclude state taxes, which in many cases are higher. The levy brings in more than US$23 billion each year for federal highway and public transit programmes.

When reporters at the White House asked how long the tax should be paused, Trump replied, "Until it's appropriate." He noted that although the levy is only a small share of the pump price, "it's still money."

As prices have climbed, the Trump administration has drawn millions of barrels from the US Strategic Petroleum Reserve and temporarily eased sanctions on some Russian and Iranian oil cargoes already at sea. Washington is also in talks with nations that rely on Middle East crude about joining a coalition to secure the Strait of Hormuz, a route through which roughly one-fifth of the world's traded oil normally moves.

Republican Senator Josh Hawley of Missouri said on social media Monday that he will put forward legislation to suspend the gas tax. Democrats have backed similar measures before. Representative Anna Paulina Luna said in a post on X that she will introduce a bill "to suspend the federal gas tax in light of Trump's recent remarks."

Senate Majority Leader John Thune said Monday he has not "been a fan" of a gas tax suspension, but added: "You know, I've got some colleagues out there who think it's a good idea. So, we'll hear them out."

Thune, a Republican from South Dakota, said he would rather see the Strait of Hormuz reopened to "normalize gas prices" without new legislation. "Obviously, any time you suspend the gas tax, that leaves a big hole in the highway trust fund, which also has implications down the road," he said.

Senator Rand Paul said that "instead of suspending the tax, we should suspend the war."

The sustained rise in fuel costs has stirred concern among some Republicans that voters could punish the party in the midterm elections.

Senator John Cornyn, who faces a tight runoff later this month to hold his seat, said he wants clarity on how roads and bridges would be funded if the tax were lifted. He drew a line between a short-term pause and a permanent cut. "A temporary suspension to get through this sort of bumpy time because of the uncertainty about energy prices, I could live with that," he said.

Trump had earlier argued that higher fuel bills were a price worth paying to keep Iran from obtaining a nuclear weapon. That stance seemed to ease on Sunday when Energy Secretary Chris Wright told NBC's "Meet the Press" that the administration was "open to all ideas," including a gas-tax suspension.

Democratic Senators Richard Blumenthal of Connecticut and Mark Kelly of Arizona are sponsoring a bill that would suspend the federal tax through October 1. Democratic Representative Chris Pappas of New Hampshire has put forward a similar House measure.

"Trump's war of choice with Iran is driving up gas prices across the country — and Americans shouldn't have to bear the additional economic burden of Trump's reckless decision making," Blumenthal said when introducing the bill.

Kelly told reporters Monday he still favours his own legislation but would accept "whatever we can get at this point." "People need relief," he said.

Several states, including Indiana and Georgia, have recently paused their own fuel taxes to ease wartime price pressure. Kentucky and Utah have trimmed state levies, and other jurisdictions are considering similar moves.

The gasoline tax remains the largest single revenue stream for federal highway and public transit programmes.

Proposed bills would backfill lost Highway Trust Fund income with general funds, but the American Road & Transportation Builders Association, which speaks for the transportation construction industry, warned that a suspension could widen the federal deficit and weaken long-term investment in roads and transit.

The group points to research showing many retailers do not pass the full value of a tax cut to buyers. Studies also indicate that state and federal gas taxes are only one part of a wider pricing picture shaped by global oil markets and other factors.