Federal Gas Tax Suspension: Potential Savings for Drivers...

In the midst of escalating oil prices driven by the conflict in Iran, the Trump administration is contemplating a temporary halt on the federal gas tax, Energy Secretary Chris Wright announced on Sunday. This initiative received backing from President Donald Trump on Monday.

“I think it’s a great idea,” President Trump stated during a phone call with CBS News. “We’re considering removing the gas tax for a certain period, and once gas prices decrease, we’ll gradually reintroduce it.”

The political climate in Iran has left its ceasefire in a precarious situation, described by Trump as being on “massive life support.”

Since military tensions led to the closure of the Strait of Hormuz earlier this year, gas prices have remained stubbornly high. Despite President Trump’s assertions of progress in addressing the conflict, the continued obstruction of this vital passage has resulted in increased crude oil costs, reflected at gas pumps across the United States.

What is the federal gas tax, and how much is it?

In response, officials within the Trump administration are advocating for a suspension of the federal gas tax as a means to alleviate the financial burden on consumers.

The federal gas tax is currently 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel fuel. (Of those amounts, 1 cent per gallon is earmarked not for the Highway Trust Fund, but the Leaking Underground Storage Tank Fund, the Energy Information Administration explains.)

A sign displays the prices of unleaded, premium, and diesel gasoline at a Speedway gas station in Columbus, Ohio, on May 11, 2026. (Brian Kaiser/Bloomberg via Getty Images)

As of Monday, the national average for a gallon of gasoline in the United States was $4.52, according to AAA analysts, although many states — and particularly those on the West Coast — have considerably higher averages. Suspending the federal gas tax could add up to significant savings for America’s motorists, though the price of a gallon would still be well above the Feb. 26 national average of $2.98, just before U.S. military action in Iran.

A suspension of the federal gas tax, or a so-called “gas tax holiday,” would still need congressional approval before it could take effect. On the state level, however, some gas tax suspensions are already being implemented. In response to rising gas prices, Georgia and Indiana have suspended their gas taxes, while Utah has approved a plan to lower its tax. And in Oregon, residents will soon vote on whether to repeal an increase to their state gas tax that took effect last year.

Aside from a suspension of the gas tax, Energy Secretary Wright repeatedly said during a Sunday appearance on NBC News that he could not “make any predictions” as to when the prices of oil and gas would come back down, despite saying in March that there was a “very good chance” that gas would be under $3 per gallon by the summertime.

“I can’t make any predictions on oil prices or gasoline prices,” Wright said.

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