WASHINGTON — The Trump administration is considering suspending the federal gasoline tax to help reduce costs for U.S. drivers following rising fuel prices linked to the Iran war, Energy Secretary Chris Wright said Sunday.
Wright said the administration is “open to all ideas” when asked on NBC’s “Meet the Press” whether President Donald Trump would support a temporary suspension of the tax. He said the proposal is being discussed as part of broader efforts to address higher energy prices.
“We are working every day to offset this rise in prices because of a critical conflict in Iran,” Wright said. “We’re open to all such ideas.”
The federal gasoline tax is set at 18.4 cents per gallon, according to the U.S. Energy Information Administration, and funds highway and infrastructure programs.
AAA data showed the national average price for gasoline at $4.52 per gallon on Sunday after rising by about 50 cents in two weeks. A suspension of the federal tax would reduce that price by about 18 to 19 cents per gallon.
Before the conflict began in February, AAA reported the national average price of gasoline at $2.98 per gallon.
Wright did not provide a forecast for future fuel prices but said costs are expected to remain elevated while the conflict continues.
“Gasoline and diesel prices are up, and they’ll remain up while this conflict is in place,” Wright said. “Then they will come back down.”