U.S. President Donald Trump has acknowledged the financial strain many Americans are experiencing due to the rising gas prices. However, his proposal to temporarily halt the federal fuel tax may not have the significant impact that both he and drivers are hoping for.
On Monday, Trump expressed his desire for a temporary suspension of the federal gas tax, a measure that would require Congressional approval. The current U.S. federal tax on a gallon of gasoline stands at 18.4 cents, a fraction of the current national average gas price of $4.52 US per gallon, according to data from travel services agency AAA.
Since the U.S.-Israel conflict with Iran began in late February, the national average gas price has surged by 50%, translating to a $1.54 US per gallon increase over just 10 weeks. Trump has acknowledged that eliminating the tax would have a minimal impact on reducing gas prices, stating, “It’s a small percentage, but it’s, you know, it’s still money.”
As gas prices have climbed, Trump’s approval ratings have declined, with the upcoming midterm elections adding pressure on the White House to address inflation concerns. Recent polling by Ipsos Public Affairs for Reuters news agency revealed that more than three-quarters of respondents blame Trump for the spike in gas prices.
Alec Tyson, the lead pollster for Ipsos in Washington, emphasized that the escalating gas prices are influencing public perception of the president. However, he noted that the cost of gas is just one of several factors contributing to Trump’s diminishing approval ratings, as Americans have broader economic concerns.
In response to Trump’s call to halt the gas tax, Republican lawmakers have announced plans to introduce bills to enact the suspension. When asked about the duration of the pause, Trump indicated it would last “until it’s appropriate,” despite estimates that such a move would cost the U.S. Treasury approximately $3.5 billion per month.
The U.S. federal gas tax has remained unchanged at 18.4 cents per gallon since 1993, according to the non-partisan Congressional Budget Office. Meanwhile, in Canada, Prime Minister Mark Carney’s government recently suspended the federal excise tax on gasoline and diesel, equivalent to 27.6 cents US per gallon, until Labour Day.