WASHINGTON — President Trump said Tuesday that he’s considering suspending the federal gas tax to lower costs — after four states already did so ahead of the midterm elections.
Trump would need Congress to return to Washington to consider the plan — and both the House and Senate are not scheduled to return until after the election.
“We’re thinking about that,” Trump told reporters at the White House.
The federal gas tax, which finances highway and bridge maintenance, adds 18.4 cents to every gallon of gasoline and 24.4 cents per gallon of diesel.
Trump has been attempting to lower energy costs, which have fueled inflation, in the run-up to the election — after large jumps in prices caused by the Iran war and Ukrainian attacks on Russian refineries.
The president on Monday signed an executive order allowing truckers to purchase tax-free “red dye” diesel through Dec. 31 — allowing the fuel that’s typically used for tractors and construction equipment to be used more broadly.
G-7 nations, including the UK, France, Germany, Italy, Canada and Japan, collectively agreed Friday to release 100 million barrels of oil and diesel from strategic reserves to tamp down prices.
The average cost of diesel is $6.32 per gallon, according to AAA data — down from an all-time high of $6.53 on Sept 22, but still nearly double the $3.68 paid one year ago, indirectly increasing other costs.
Gasoline is also up significantly, currently averaging $4.37 per gallon, up from $3.13 last year.
Both Republican- and Democratic-led states have passed temporary waivers of their gas taxes or taken measures to ease restrictions on the purchase of “red dye” and ethanol blend fuels.
Ohio Republican Gov. Mike DeWine signed legislation waiving through Dec. 31 his state’s 38.5 cent gas tax and 47 cent diesel tax. Utah Republican Gov. Spencer Cox has loweredd his state’s levies by 6 cents through the end of the year.
Georgia Republican Gov. Brian Kemp suspended through at least Oct. 29 his state’s 33.3 cent gas tax and 37.3 cent diesel tax. And Indiana Republican Gov. Mike Braun suspended a 7% gasoline use tax and a 37-cent excise tax, saving drivers roughly 59 to 61 cents per gallon, but left in place a 63-cent per gallon diesel tax, coupled with a “red dye” expansion.
Kentucky Democratic Gov. Andy Beshear paused automatic inflation adjustments to fuel taxes.
