Amid soaring gas prices in the U.S. due to the Iran war, President Donald Trump on Monday said he supports congressional action to suspend the federal gas tax, a move experts say would be more of a Band-Aid for drivers than a long-term solution to high prices. “A gas tax holiday would give consumers some momentary relief,” said Christopher Bosso, professor of public policy and political science at Northeastern. The price of gas has climbed about $1.50 per gallon since the Iran war escalated in late February.
The federal gas tax currently adds 18.4 cents per gallon to gasoline and 24.4 cents per gallon to diesel fuel purchased in the United States. Proceeds from the gasoline tax go directly into the transportation fund, or the Highway Trust Fund, to finance federal transportation programs, including mass transit, Bosso said. Trump’s comments on the suspension of the gas tax come amid an ongoing stalemate between the U.S. and Iran over disruptions in the Strait of Hormuz, a critical global oil chokepoint, and the broader war that began in late February.
