Trump Considering Federal Gas Tax Suspension

President Donald Trump said Oct. 6 that he is considering temporarily suspending the federal gasoline tax, but provided no proposal, duration or timetable. Any suspension would require Congress to pass legislation; the president cannot eliminate the tax nationwide on his own. Asked whether he supports a temporary suspension, Trump said, “We’re thinking about that.” The federal tax is 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel. The remarks signal that a tax holiday is under consideration, not that a decision has been made or legislation is moving forward. The prospect comes as fuel prices remain high. AAA figures cited in reports put the national average for gasoline at about $4.37 per gallon on Oct. 6, compared with about $3.12 to $3.13 a year earlier. Diesel averaged about $6.30 to $6.32, up from roughly $3.68 a year earlier. These figures are price snapshots, and a federal tax suspension’s effect at the pump is not established. Several states have already reduced or temporarily suspended fuel taxes or adjusted related rules.