Lawmakers Weigh 18.4-Cent Federal Gas Tax Suspension as Iran Conflict Lifts Fuel Prices
Updated
Updated · Fox News · May 25
Lawmakers Weigh 18.4-Cent Federal Gas Tax Suspension as Iran Conflict Lifts Fuel Prices
9 articles · Updated · Fox News · May 25
Lawmakers are considering President Donald Trump’s proposal to suspend the 18.4-cent-per-gallon federal gas tax as gasoline prices rise ahead of the summer driving season and midterm elections.
The push follows price pressure tied to the Iran conflict and instability around the Strait of Hormuz, a chokepoint that carries roughly 20% of global oil flows.
Trump has argued the increase will be temporary, saying on May 19 that Americans would need to “put up with it for a little while” as his administration presses Iran over its nuclear program.
The political fight is sharpening because more than 77 million voters backed Trump in 2024 after he campaigned on expanding U.S. energy production, and gas prices had fallen to a four-year low last October.
With voters set to judge the trade-off in about five months, the tax-holiday debate has become a test of whether relief at the pump can offset war-driven energy costs.
Beyond a gas tax holiday, what can insulate the U.S. economy from future foreign oil disruptions?
With a potential Iran deal still uncertain, could U.S. gas prices soon surpass the $5 per gallon record?
Will the massive energy needs of AI data centers force a shift back toward supporting renewable energy policies?