Trump seeks temporary federal gas tax suspension amid Iran war price spike

President Trump has called for a temporary suspension of the federal gas tax to ease the burden of soaring pump prices caused by the ongoing war with Iran. The move would require congressional approval and comes as average gasoline costs have jumped more than 50 percent to $4.52 per gallon.

Trump told CBS News on Monday that he supports pausing the 18.4-cent-per-gallon tax on regular fuel for a period of time. He said the tax would be reintroduced once prices fall, adding that the duration would last “till it’s appropriate.” The president spoke from the Oval Office after an earlier phone interview with the network’s Nancy Cordes.

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Gas station scene with high fuel prices, E15/E10 pumps, and EPA ethanol waiver announcement amid Iran conflict.
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EPA waives ethanol fuel restrictions amid soaring gas prices

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The Environmental Protection Agency announced on Wednesday it will temporarily lift federal limits on E15 and E10 gasoline blends to help lower prices strained by the Iran conflict. The waiver aims to boost fuel supply starting May 1. Gas prices have reached nearly $4 per gallon, the highest since 2022.

Georgia Governor Brian Kemp has suspended the state's gas tax for 60 days to ease the burden of rising fuel prices caused by the U.S.-Israeli war in Iran. This is the first such relief measure by any U.S. state since the conflict began on February 28. The move comes as national gas prices hit $3.912 per gallon, the highest since October 2022.

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As the US-Iran conflict disrupts global oil via the Strait of Hormuz closure—driving prices above $100 per barrel—Trump administration rollbacks on vehicle fuel efficiency standards are amplifying domestic gasoline price surges, undoing decades of efficiency gains that previously blunted such shocks.

Oil prices surged about 20% on Monday as the expanding U.S.-Israeli war with Iran prompted major Middle Eastern producers to cut supplies, reaching highs not seen since July 2022. Iraq and Kuwait have reduced output, amid fears of prolonged disruptions in the Strait of Hormuz. The conflict could impose weeks or months of elevated fuel costs worldwide, even if it resolves quickly.

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Цены на сырую нефть поднялись выше $110 за баррель — на 20% за несколько дней и более чем на 50% с начала войны — поскольку конфликт США и Израиля с Ираном затягивается на вторую неделю, усиливая опасения затяжных нарушений поставок в Персидском заливе. Азиатские рынки обвалились, а президент США Дональд Трамп назвал скачок «необходимой жертвой» ради безопасности.

The Automatic Fuel Pricing Committee raised prices for all fuel categories by 15 to 22 percent at 3 a.m. on Tuesday. This sudden mid-week decision breaks the normal quarterly review pattern, with increases typically issued at the week's end. It followed a meeting where Prime Minister Mostafa Madbuly discussed options with ministers, including Petroleum Minister Karim Badawy, to address a potential energy crisis if the US-Israeli war on Iran persists.

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Oil prices climbed sharply after Donald Trump rejected Iran's peace plan, sending ripples through global markets. The rupee hit a record low and equities slumped in India amid the developments. This follows last week's US-Iran exchange of fire that shattered a fragile ceasefire.

 

 

 

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