President Donald Trump on May 11 (US time) said he supported a federal tax cut on gasoline amid rising fuel prices in the US due to Iran-related wars.
Answering reporters at the Oval Office, Mr. Trump said he would reduce the federal gasoline tax by 18.4 cents/gallon and said the measure would last "until appropriate". The tax suspension requires the US Congress to pass a new law. The Congress is currently controlled by Mr. Trump's Republican Party.
Senator Josh Hawley of Missouri has submitted a bill to temporarily suspend gasoline and diesel tax of 24.4 cents for 90 days.
Gasoline prices in the US have increased since the war began on February 28 and Iran continues to cause the Hormuz Strait to be disrupted. This is a shipping route that transports about 20% of global oil. According to the American Automobile Association AAA, the average gasoline price in the US on May 11 reached 4.52 USD/gallon, the highest level since 2022 when the price once reached 5.01 USD/gallon.
Senate Majority Leader John Thune has not pledged to support freezing gasoline taxes. He said the best way to reduce fuel prices is to restore operations in the Strait of Hormuz, while emphasizing that tax revenue is used for road repairs.
Previously, some Democratic senators, including Senator Mark Kelly of Arizona, proposed suspending this tax until October. The gasoline tax currently generates about 2.5 billion USD per month for the transport infrastructure fund.
President Trump also said that the airline bailout plan has not been really put forward, and commented that the aviation industry is "not too bad". Low-cost airlines have offered a $2.5 billion bailout package. Spirit Airlines ceased operations from May 2nd on the grounds that rising aircraft fuel prices made the restructuring plan impossible to implement.
Some US states such as Indiana, Kentucky and Georgia have also reduced gasoline taxes to support people.
Mr. Trump had previously implemented many measures to cool down energy prices such as lending oil from the Strategic Oil Reserve and temporarily exempting the Jones Act to make the transportation of oil, fuel and fertilizers domestically more convenient.
