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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Illustration of high California gas prices near $6 at a pump and governor candidates debating against tax suspension relief.
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Top California governor candidates reject gas tax suspension as pump prices near $6

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Several leading candidates in California’s 2026 governor’s race said in a CBS Los Angeles debate on April 28 that they oppose suspending the state’s 61.2-cent-per-gallon gasoline excise tax, even as average prices statewide hovered around $5.98 a gallon, according to AAA. Two Republican contenders backed a suspension, while two lower-polling Democrats said they would support temporary relief.

Rising fuel prices from the ongoing conflict in Iran are prompting households and industries worldwide to reduce oil consumption, with experts suggesting some changes may endure. The International Energy Agency has noted demand destruction, forecasting a drop of 420,000 barrels per day this year. Asia, hit hardest by supply disruptions through the Strait of Hormuz, is accelerating shifts toward renewables and electric technologies.

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President Donald Trump said in a Tuesday CNBC interview that he anticipated oil prices surging to $200 per barrel when he authorized military action against Iran. Current prices stand at $90 per barrel, the highest since 2022, lower than his forecast. He also noted the stock market has remained stable despite his predictions of a sharp decline.

Oil prices dipped as investors awaited developments on the Iran ceasefire and President Trump's summit with China's Xi Jinping. Brent crude futures fell to $106.95 a barrel while WTI futures reached $101.52.

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Gasoline prices reached their highest level since the start of the Middle East conflict on Wednesday, May 6. The average price of super unleaded 95 stood at 2.03 euros per liter. The increase stems from the war and the paralysis of the Strait of Hormuz.

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