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Trump on suspending federal gas tax
Trump answered yes on Monday when asked if he would suspend the federal gas tax amid higher prices stemming from the war with Iran.
WASHINGTON - President Donald Trump said he will move to suspend the federal tax on gasoline to help Americans shoulder surging fuel prices caused by the Iran war.
Trump says ‘yes’ to suspending federal gas tax
What they're saying:
Trump answered yes on Monday when asked if he would suspend the federal gas tax amid higher prices stemming from the war with Iran.
He said the price of oil and gas would drop "like a rock" as soon as hostilities are over. Asked how long the suspension would last, he said, "until it’s appropriate."
A gasoline station attendant pumps gas into a car at a filling station. (Credit: Sean Gallup/Getty Images)
Federal gas tax is 18.4 cents per gallon
Dig deeper:
The federal gas tax is 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel, according to the U.S. Energy Information Administration.
After jumping 50 cents in just two weeks, the average price for gas in the U.S. on Monday sat at $4.52 per gallon, AAA numbers indicated.
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Gas prices to remain stubborn even if ceasefire happens
We’re hearing reports from Axios that even if the Strait of Hormuz reopened immediately, gas prices would likely remain elevated — possibly even higher than pre-war levels — at least through the midterm elections. LiveNOW’s Austin Westfall speaks with Axios energy reporter Ben Geman to discuss.
While subtracting 19 cents from that figure still leaves an average price of $4.33 per gallon, "it’s still money," Trump said.
Two days before the start of the war, AAA pegged the average cost of gas at $2.98 per gallon.
What is a gas tax holiday?
Big picture view:
A gas tax holiday is a temporary suspension of the federal gas tax. That does not include state taxes, which often are higher.
The tax provides more than $23 billion per year in revenue for federal highway and public transit programs.
Gasoline tax by state
Energy Secretary said Trump administration is ‘open to all ideas’
The backstory:
Over the weekend, Energy Secretary Chris Wright said the administration was "open to all ideas" when asked whether Trump would support suspending the tax. The comment came during an appearance on NBC’s "Meet the Press" and Wright framed a possible suspension as something that would be part of a broader effort to alleviate high energy costs.
"We are working every day to offset this rise in prices because of a critical conflict in Iran to drive prices down, and we’re open to all such ideas," Wright said.
Congress needs to approve the suspension
What's next:
But, the president cannot suspend the federal tax on his own. Congress would have to approve the move.
Both the House and Senate are controlled by Republicans.
Lawmakers from both parties have pushed for a gas-tax suspension, saying it would provide much-needed relief for families and businesses that rely on their cars and trucks to get to work and school and run everyday errands.
Analysts have warned that refinery constraints added to the ongoing conflict in the Middle East could push gas prices even higher in the coming months, especially as motorists start to hit the highways for summertime road trips. When asked, Wright repeatedly declined to answer whether he thinks $5 per gallon gas could be around the corner.
EARLIER: Trump administration open to suspending federal gas tax, Energy Secretary says
"I’m avoiding price predictions," Wright said. "Gasoline and diesel prices are up, and they’ll remain up while this conflict is in place, and then they will come back down, and ultimately they’ll come back down lower than they were before."
The Source: This story was reported from Los Angeles. The Associated Press, Nick Vivani, previous FOX Local reporting contributed.