Trump Backs Temporary Federal Gas Tax Pause as Prices Hit $4.52

President Donald Trump has endorsed a temporary suspension of the federal gasoline tax in response to sharply higher pump prices driven by disruptions from the ongoing conflict with Iran. The national average for regular gasoline reached $4.52 per gallon on Monday, according to AAA data, up more than 50 percent since late February when the conflict escalated and affected flows through the Strait of Hormuz.

Trump described the move in a CBS News interview as a short-term measure that would remain in place until prices stabilize. He indicated that once conditions improve, the tax would phase back in. The federal levy currently stands at 18.4 cents per gallon on gasoline and 24.4 cents on diesel. Any suspension requires legislation from Congress, and several Republican lawmakers, including Sen. Josh Hawley of Missouri, have said they will introduce bills to that effect.

Energy markets have reacted to partial closures and threats around the Strait, through which roughly one-fifth of global oil trade passes. Investor Eric Nuttall warned earlier this month that demand rationing could arrive within weeks if supplies tighten further, describing the situation as potentially the largest energy crisis in modern times. Iranian strikes on regional infrastructure have added to those pressures.

Trump has maintained that prices will fall once the conflict ends, repeating that outcome would occur rapidly. He dismissed recent Iranian proposals as inadequate and poorly conceived. Administration officials have signaled openness to any steps that ease costs for consumers without committing to broader interventions such as airline bailouts.

House Minority Leader Hakeem Jeffries has criticized the administration over the price increases, noting voter concerns in swing districts ahead of November elections. A Fox News poll showed nearly 60 percent of respondents viewing higher gas costs as a major household problem. Jeffries previously urged Republicans not to politicize similar price spikes during the prior administration.

From a market perspective, pausing an excise tax functions mainly as a transfer that shifts revenue burdens without expanding available supply. Past episodes of tax holidays have shown limited and fleeting effects on retail prices once wholesalers adjust margins. The underlying constraint remains geopolitical interference with production and shipping routes rather than the tax itself.

Earlier policy shifts under the current administration, including the removal of electric vehicle subsidies and adjustments to fuel economy rules, align more closely with allowing consumer preferences and production incentives to operate without heavy mandates. These changes occurred before the latest price surge and do not address immediate supply shortfalls.

Congressional action on the tax would still face the same limits seen in prior attempts at similar relief. Without resolution of the Strait disruptions, any relief would likely prove temporary and leave broader questions of energy availability unresolved.