President Trump said Thursday that he could suspend the federal gas tax to help curb rising oil costs because of the war in Iran.
The national average cost for a gallon of gas hit $3.98 on Thursday, a full dollar higher from the $2.98 average per gallon before the Iran conflict began, according to data from AAA, the automobile club. Last week, the national average cost for a gallon of gas was $3.88.
Mr. Trump floated a reprieve from the federal gas tax during a meeting with Cabinet officials. The tax adds 18.4 cents per gallon of gasoline to pay for upkeep of roads and bridges.
“It’s something we have in our pocket if we think it’s necessary,” he said.
The increase in gas prices is a direct result of the U.S. and Israeli joint military operation against Iran, which began on Feb. 28. In response, Tehran largely blocked ships from traveling through the Strait of Hormuz, through which 20% of the world’s oil is transported.
Democrats have called for suspending the federal gas tax.
Earlier this week, Rep. Chris Pappas, New Hampshire Democrat, introduced legislation in the House to suspend the federal tax through Oct. 1. Sen. Mark Kelly, Arizona Democrat, introduced similar legislation in the upper chamber.
“These soaring prices mean that every school drop off, every trip to the doctor or drive to work takes a bigger bite out of a family’s budget,” Mr. Pappas said in remarks on the House floor.
The federal gas tax, which was implemented in 1932, has never been suspended.
President Biden called for a three-month gas tax holiday in 2022 as prices surged after Russia invaded Ukraine. However, Congress never passed it, with several lawmakers saying it does little to reduce costs and creates an artificial demand during a supply shock to the market.
Several governors have suspended their state’s gas tax because of the Iran conflict, while others have pushed back hard to keep it.
Georgia Gov. Brian Kemp, a Republican, last week signed a law to suspend the state’s 33.3 cents per gallon gas tax for 60 days. Other states such as California, Connecticut and Utah are considering similar measures.
Maryland Gov. Wes Moore, a Democrat, rejected demands from Republican lawmakers in his state to suspend the gas tax, saying the move would create a $100 million hole in the state’s budget. In South Carolina, the state’s Department of Transportation is fiercely opposing a bipartisan effort to suspend the gas tax, saying it would have to pause ongoing construction projects.
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