Washington: United States President Donald Trump has announced plans to temporarily suspend the 18-cent federal petrol tax in an effort to offset rising fuel prices that have surged in recent weeks.
Trump said the tax cut would remain in place for a period of time and would be reintroduced once prices stabilise. Trump remarked that, “Yup, we’re going to take off the gas tax for a period of time, and when gas goes down, we’ll let it phase back in.” The federal petrol tax currently generates around $2.5 billion, funding US road infrastructure projects.
Congressional approval required
Despite Trump’s announcement, legal experts note that suspending the tax is not within the executive branch’s authority. Any such move would require approval from the US Congress.
Republican Senator Josh Hawley said he plans to introduce legislation to implement the suspension, while Democratic Senator Mark Kelly had previously proposed a similar measure until October. Energy analysts say the proposal reflects expectations of prolonged fuel market pressure rather than a short-term spike.
Fuel prices climb with geopolitical tensions
Petrol prices in the US have continued rising since early-year strikes linked to tensions involving Iran. The average price of regular petrol now stands at $4.52 per gallon, compared with $2.98 at the start of the conflict period, according to the American Automobile Association.
Crude oil markets have also reacted sharply, with Brent crude futures rising above $104 per barrel and US West Texas Intermediate nearing $98 per barrel.
Energy markets and airline industry under pressure
Energy stocks have gained on higher oil prices, with major firms such as Exxon, Chevron, Shell, and BP all posting increases in trading.
The airline sector is also feeling the impact. Budget carrier Spirit Airlines recently ceased operations after 34 years, citing sustained fuel price increases linked to geopolitical developments. Other carriers, including United Airlines, have announced fare hikes due to rising jet fuel costs.
While the proposed petrol tax suspension could provide short-term relief to consumers, analysts warn that its implementation depends on Congressional approval and broader stability in global oil markets.
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