President Donald Trump speaks at a dinner for members of his administration and law enforcement organization leaders during National Police Week, in the White House Rose Garden. (Photo: AP)
US President Donald Trump said he supports cutting the federal gasoline tax as fuel prices increase during the Iran conflict, according to Reuters.
“Yeah, I’m going to reduce,” Trump told reporters when asked about suspending the tax. Asked how long it would last, he said, “till it’s appropriate”.
Any suspension of the 18.4-cent federal gas tax would need approval from Congress, which is controlled by Republicans.
Lawmakers move on proposal
Republican Senator Josh Hawley said he was introducing legislation to suspend both the gasoline tax and the 24.4-cent diesel tax for 90 days.
Fuel prices have risen since the war began on February 28, with disruption around the Strait of Hormuz affecting global oil supply. According to AAA, average US gasoline prices reached $4.52 a gallon on Monday.
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Senate Majority Leader John Thune said he was unsure about backing a tax freeze.
“We’ll see where our members are,” Thune said, adding that reopening the Strait of Hormuz would be the most effective way to lower prices.
Earlier this year, Democrats including Senator Mark Kelly had proposed suspending the tax until October.
Impact on consumers uncertain
Trump said he understood the tax made up only a small part of fuel costs but added, “it’s still money”.
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Energy analyst Bob McNally told Reuters that cutting the tax may have limited effect if supply disruptions continue.
“If the federal gasoline tax is suspended but the Strait of Hormuz remains closed, consumers will barely notice,” he said.
Rising fuel prices are also increasing costs for transport and goods, adding pressure on consumers. The issue could become a challenge for Trump and Republicans as they seek to retain control of Congress in the November midterm elections.
The administration has also taken steps such as releasing oil from reserves and easing shipping rules to try to manage prices.
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President Donald Trump speaks at a dinner for members of his administration and law enforcement organization leaders during National Police Week, in the White House Rose Garden. (Photo: AP) 
