President Donald Trump announced on Tuesday that his administration is considering a suspension of the federal gasoline tax. This consideration comes as voter dissatisfaction over fuel costs is reportedly being noted by the president, a month before the midterm elections.
When questioned about the potential suspension, Mr Trump stated, “We’re thinking about that.” Any such suspension would necessitate an act of Congress, as the president cannot unilaterally suspend the federal tax.
The federal tax currently stands at 18.4¢ per gallon on gasoline and 24.4¢ on diesel. Implementing a suspension would result in an approximate 4% reduction in the price of a gallon of regular petrol. This tax also contributes over $23bn annually towards highways and public transit.
Mr Trump previously raised the idea in May when fuel prices rose sharply due to the Iran war, and pump prices have remained high since then. On Tuesday, the national average for regular petrol was $4.3685 a gallon, according to AAA, which is more than a dollar higher than a year ago.