Energy Secretary Chris Wright said Sunday the Trump administration would support suspending the federal gas tax if it helps lower fuel prices for Americans amid rising costs tied to the conflict with Iran.
“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 on NBC’s “Meet the Press.”
The national average gasoline price stood at $4.52 per gallon Sunday, according to AAA. Americans currently pay about 18 cents per gallon in federal gasoline taxes and roughly 24 cents per gallon in diesel taxes.
A suspension of the federal gasoline tax would lower the national average price to about $4.34 per gallon.
Even with that reduction, prices would remain well above the $2.98-per-gallon average recorded two days before President Donald Trump launched military action against Iran.
Economists and analysts have questioned how much relief a temporary tax pause would provide, particularly for lower-income Americans facing higher transportation and living costs due to rising fuel prices.
A prolonged gas tax holiday could also affect the federal Highway Trust Fund, which relies heavily on fuel tax revenue to finance road construction and infrastructure repairs nationwide.
Trump has previously described higher gas prices as “short-term.”
Wright, however, warned last month that elevated fuel prices could continue for months even after tensions involving Iran ease.
On Sunday, Wright declined to predict future oil or gasoline prices. He said energy costs could decline once shipping resumes through the Strait of Hormuz.
“I can’t make any predictions about oil prices or gasoline prices,” Wright said. “When we start to get free flow of traffic through the Strait of Hormuz, energy prices will come down.”
Commercial shipping through the Strait of Hormuz remains heavily disrupted amid competing naval blockades tied to the ongoing regional conflict.
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