- Trump says his administration is considering suspending the 18.4-cent federal gas tax.
- Congress must approve any suspension and is not due back until after the Nov. 3 midterms.
- Trump signed an order letting truckers use tax-exempt red-dyed diesel through Dec. 31.
- Diesel averages $6.32 a gallon, and Trump's approval sits at a career-low 32%.
- Several states have already suspended or cut their own fuel taxes.
President Donald Trump said Tuesday that his administration is exploring a temporary suspension of the 18.4-cent federal gasoline tax as soaring fuel costs threaten to shape the political landscape weeks before the Nov. 3 congressional elections. The president's comments came during an exchange with reporters at the White House.
"We're thinking about that," Trump responded when asked whether he supports suspending the federal gas tax. The administration has been working to contain energy prices that have surged amid disruptions tied to the U.S.-Israeli military campaign against Iran and Ukrainian attacks on Russian refineries.
Any suspension of the federal gas tax would require action from Congress, which is currently out of session until after the midterms. Trump offered no timeline for when he might press lawmakers to return and consider the proposal.
Broader diesel access ordered as costs climb
The president's latest remarks followed his Monday executive order temporarily expanding highway access to red-dyed diesel, a fuel normally restricted to off-road uses such as farming and construction. Trump announced the change at a Nebraska rally.
The move allows truckers to purchase the tax-exempt fuel through Dec. 31 in an effort to lower diesel costs that have pushed the average price to $6.32 per gallon, according to AAA. That price is up roughly 70% from a year ago.
The federal diesel tax stands at 24.4 cents per gallon, meaning the order permits broader use of fuel that would otherwise draw the highway levy. Revenue from both the gasoline and diesel taxes flows into the Highway Trust Fund, which pays for federal road and transit projects.
Political stakes rise with fuel costs
Republicans hold narrow majorities in both the House and Senate heading into the Nov. 3 elections, making voter frustration over energy prices a critical factor. Several states have already moved independently to ease the burden. Ohio, Georgia and Indiana have suspended all or part of their fuel taxes, Utah has cut its levies, and Kentucky paused automatic inflation adjustments.
Trump's approval rating has held at 32%, a career low, according to a Reuters/Ipsos survey conducted Sept. 30 through Oct. 5. The poll found that Americans' top worry is the cost of living, a burden Reuters tied to surging gasoline and diesel prices.
Heating oil costs have spiked across the Northeast, where Democratic lawmakers are pressing for more federal help ahead of winter. Trucking, farming and other diesel-dependent industries are feeling the strain, too.
Allied reserve releases aim to offset Hormuz disruptions
Beyond the tax proposals, the administration has pushed to boost fuel supplies. After U.S. pressure, G-7 nations agreed Friday to draw a combined 100 million barrels of crude and diesel from emergency stockpiles, aiming to ease shortages and calm prices.
Disruptions in the Strait of Hormuz, a critical oil shipping route, have compounded the problem, as have strikes on energy facilities and refinery outages that have cut supplies of crude and refined fuels.
Trump has blamed the price surge largely on wartime disruptions and global supply shortfalls. A full suspension would cut the federal share of gasoline prices by 18.4 cents per gallon only if retailers passed the entire savings along to drivers, and actual relief would depend on market behavior. Lawmakers would also have to decide how to replace the lost money for the Highway Trust Fund.
Drivers, meanwhile, are paying at the pump for two overseas wars, and with Congress not due back until after the election, a gas tax holiday looks more like campaign-season talk than immediate relief.
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