With gasoline prices climbing to their highest national average in four years, the White House is signaling openness to suspending the federal gas tax, a move the Donald Trump administration says could provide relief to consumers squeezed by rising fuel and energy costs linked to the conflict involving Iran.
The national average for regular gasoline reached $4.52 per gallon on Sunday, according to industry tracking data cited by administration officials, intensifying pressure on the White House as Americans head into the summer driving season. The surge comes amid continuing instability around the Strait of Hormuz, a key shipping route for global oil supplies.
Chris Wright said during an appearance on NBC's "Meet the Press" that the administration is prepared to consider a temporary suspension of the federal gasoline tax, which has remained unchanged since 1993.
"All measures that can be taken to lower the price at the pump and lower the prices for Americans, this administration is in support of," Wright said. "We're open to all ideas."
The federal levy currently stands at 18.3 cents per gallon for gasoline and 24.3 cents for diesel. A full suspension would theoretically reduce average gasoline prices from $4.52 to roughly $4.34 per gallon. For drivers filling a standard 15-gallon tank, that would amount to savings of about $2.75 per fill-up.
Economists and transportation analysts, however, caution that consumers may not receive the full benefit. A 2022 study from the Penn Wharton Budget Model examining earlier state-level gas tax holidays found that only 58% to 87% of the tax savings reached motorists directly, with the remaining benefit absorbed within fuel distribution chains.
That means an 18.3-cent federal tax suspension could ultimately translate into actual savings closer to 10 to 15 cents per gallon at many stations.
The proposal also threatens to reopen a long-running debate over how the federal government funds infrastructure. The Highway Trust Fund, which finances federal road, bridge and transit projects nationwide, relies heavily on fuel-tax revenue.
According to estimates from the Bipartisan Policy Center:
- A five-month suspension of the federal gas tax would remove roughly $17 billion from the Highway Trust Fund.
- That figure represents about 46% of projected gas and diesel tax revenue for fiscal year 2026.
- The fund has already required approximately $275 billion in general-fund transfers since 2008 to remain operational.
- The Congressional Budget Office projects the fund could become insolvent by 2028 without structural reforms.
Several states have already implemented their own fuel-tax relief measures. Georgia suspended its 33-cent gasoline tax for 60 days beginning in March, while Mike Braun authorized simultaneous suspensions of Indiana's fuel excise and sales taxes, cutting nearly 60 cents per gallon from prices in the state. Utah also approved a 15% reduction in its gasoline tax through the end of 2026.
Internationally, Canada suspended its federal fuel excise tax in April, reducing gasoline prices by roughly 10 cents per litre through early September.
The political pressure surrounding fuel costs is increasing in Washington as lawmakers from both parties look for short-term relief measures. Democratic Senators Mark Kelly and Richard Blumenthal introduced the Gas Prices Relief Act of 2026 earlier this year, proposing a temporary suspension of the federal gas tax through Oct. 1 while using Treasury funds to offset losses to the Highway Trust Fund.
Wright stopped short of predicting whether gasoline prices could cross the $5-per-gallon threshold later this summer but acknowledged the administration expects continued pressure as geopolitical tensions persist.
"Prices will remain up while this conflict is in place," Wright said.
