WASHINGTON — President Donald Trump said on Monday that he would suspend the federal gas tax to help offset the high cost of fuel due to the Iran War.
The Associated Press reported that Trump said the ceasefire with Iran is on “life support.”
Trump had earlier told CBS News that he would suspend the tax “for a period of time” but then would “let it phase back in.”
How much is the federal gas tax?
The tax is 18.4 cents a gallon of gas or 24.4 cents a gallon on diesel, but requires an act of Congress to suspend. If they would agree, the suspension would cost the country about half a billion dollars a week, CBS News said.
Several Democratic lawmakers had already introduced bills to pause or lower the tax prior to Trump’s declaration, according to CBS News.
The price of gas has gone up 50% since the start of the war in Iran.
The nationwide average for a gallon of regular gas on Monday was $4.52, according to AAA. The lowest is $3.946 in Oklahoma, while the highest is $6.158 in California.