U.S. President Donald Trump has acknowledged the financial strain that many Americans are facing due to the rising gas prices. However, his proposal to halt the federal fuel tax may not have the significant impact that both he and drivers are anticipating. Trump announced on Monday his desire to temporarily suspend the federal gas tax, a move that necessitates congressional approval.
The U.S. federal tax on a gallon of gasoline is currently set at 18.4 cents, a small fraction of the national average pump price of $4.52 US per gallon, as reported by travel services agency AAA. This national average has surged by 50% since the commencement of the U.S.-Israel conflict with Iran at the end of February, resulting in a $1.54 US per gallon increase in just a 10-week period.
Despite recognizing that cutting the tax will have minimal impact on prices, Trump stated, “It’s a small percentage, but it’s, you know, it’s still money.” With the upcoming midterm elections less than six months away, Trump’s approval ratings have declined as gas prices have risen. Recent polling by Ipsos Public Affairs for Reuters revealed that over three-quarters of respondents blamed Trump for the spike in gas prices.
Alec Tyson, the lead pollster for Ipsos in Washington, emphasized that the price hike is influencing public perception of the president. However, he noted that the cost of gas is just one of several factors contributing to Trump’s decreasing approval ratings, with Americans expressing broad concerns regarding the economy and cost of living.
Following Trump’s call to suspend the gas tax, Republican lawmakers in both the House and Senate announced plans to introduce bills to enact the temporary pause. When asked about the duration of the tax suspension, Trump responded, “Until it’s appropriate.” The proposed pause is estimated to cost the U.S. Treasury approximately $3.5 billion per month, according to the Committee for a Responsible Federal Budget.
The federal gas tax in the U.S., at 18.4 cents per gallon of gas and 24.4 cents per gallon of diesel, has remained unchanged since 1993, according to the non-partisan Congressional Budget Office. In a similar move, Canada’s Prime Minister Mark Carney’s administration suspended the federal excise tax on gasoline (10 cents per litre) and diesel (four cents per litre) in mid-April, effective until Labour Day, to address rising fuel costs.
