Trump plans to eliminate the federal gas tax due to the price crisis
U.S. President Donald Trump announced his intention to temporarily suspend the federal fuel tax to ease the financial burden on American consumers. The decision was prompted by a sharp rise in gas prices, which have jumped 50% since the start of the conflict with Iran.
He announced this in an interview with CBS.
Currently, a liter of gasoline in the U.S. costs an average of $1.20, but the tax suspension will reduce the price by only 5–6 cents per liter. Furthermore, such an initiative requires congressional approval and would result in budget losses of approximately $500 million per week. Donald Trump emphasized that the tax would be reinstated gradually once the market situation stabilizes.
Commenting on energy security, the president noted that the U.S. is capable of unblocking the Strait of Hormuz, which Iran has blocked. He added that he is considering various options, including intensifying Operation Inherent Resolve or taking even more radical steps. Republicans are already drafting bills to implement tax breaks, which previously had support among Democrats as well.
Indian Prime Minister Narendra Modi has appealed to citizens and businesses to reduce their use of transportation and travel. The reasons cited include rising global energy prices and the need to optimize fuel consumption.
As a reminder, oil prices fell slightly following the UAE’s withdrawal from OPEC, but have risen again due to tensions surrounding Iran.
