Trump Says US Will Suspend Federal Gas Tax Amid Rising Prices

WASHINGTON, May 12 (Bernama-dpa) -- United States (US) President Donald Trump on Monday said his administration will suspend the federal gas tax, as consumers continue to struggle with high fuel prices, reported German Press Agency (dpa).

The tax is to be suspended "until it's appropriate," Trump said at a press conference in Washington. "It's a small percentage, but you know, it's still money."

US media, including broadcaster CBS News, signalled Trump would need approval from Congress to enforce the measure. 

According to 2024 data from the US Energy Information Administration, the federal government imposes US$0.184 in tax per gallon (3.78 litres) of petrol and US$0.244 for diesel. 

The move is unlikely to alleviate concerns, as the price per gallon for petrol has surged from US$3.14 last year to US$4.52 on Monday, figures from the American Automobile Association showed. 

In addition to the federal fuel tax, the majority of states also levy a duty on petrol and diesel.

In July 2024, the average tax on petrol was US$0.326, with diesel at US$0.348.

Trump also appeared to admit that his decision to launch the strikes on Iran, which subsequently blockaded the key Strait of Hormuz, was responsible for the rise in prices.

"As soon as this is over with Iran, as soon as it's over, you're going to see gasoline and oil drop like a rock," he said.

-- BERNAMA-dpa