Trump Considers Pausing Federal Gas Tax As Gas Prices Soar Across US

US President Donald Trump is considering pausing the federal gas tax as gas prices soar across the United States due to the Iran war.

Several states, like Georgia, Indiana, and Utah, have already implemented suspensions of the state gas tax, with the measure allowing residents to save 33, 36, and 39 cents per gallon in each state, respectively.

Meanwhile, the federal gas tax stands at an additional 18.4 cents per gallon, but that could soon change. In recent weeks, gas prices have soared amid the ongoing war with Iran, particularly due to growing tensions in the Strait of Hormuz and a fragile ceasefire that Trump described as "on life support."

Many citizens are blaming this problem on the war with Iran, but others have grown frustrated with gas companies. Gas corporations like Shell and BP have reported massive spikes in profits since the beginning of the war, largely due to windfall profits. When market prices for oil and gas spike, the price goes up, but the actual cost to extract the oil and refine it stays exactly the same– prices are simply determined by the global market. Because of this, in a world without the war, a gas company can extract oil for $30 per barrel and sell it for $50 per barrel. However, when the war hits, the market price spikes to $100 per barrel, while the corporation is still paying $30 per barrel for extraction. This leads to massive profit spikes during geopolitical conflicts– for example, Shell reported more than $7 billion in additional profits due to the war, while BP's profits doubled to $3.2 billion.

According to AAA, the national average gas price is now hovering around $4.50 after stabilizing around $4.00 a month ago– though these are both significantly higher than the $2.98 national average from before the war. Trump's proposed measure to suspend the gas tax could bring prices down, but the bill will need to be passed by Congress before it can happen.

Meanwhile, the problem is being exacerbated by Iran's ability to counter Trump's threats, and neither side is willing to give way in terms of negotiations.

As a whole, the Trump administration considers the war a success, but many American citizens believe the opposite. Their primary goal was to wipe out Iran's authoritarian regime and obliterate their ability to produce a nuclear weapon with their uranium stockpiles; stockpiles that Iran would not even possess if the US had not pulled out of a major nuclear deal with Iran during the first Trump term, a move that came after heavy Israeli lobbying. Now, the US is attempting to back out of the war, but the regime is still in power. Iran still possesses underground stockpiles of enriched uranium. And, most importantly, they have gained control over the Strait of Hormuz– control that they are not willing to give up.

On a wider scale, more and more Americans are becoming frustrated with Trump's strategies, which do not appear to have paid off. His tariffs – many of which have been deemed unconstitutional by the Supreme Court – secured several major economic deals but strained ties with various US allies and brought higher prices to the entire market. His administration promised to bring down Iran's regime with the war, but their government is holding strong– some believe that it is even more powerful than before. Gas prices have skyrocketed, fertilizer is in shortage across the world, and the remainder of the Middle East is still reeling from Iranian attacks and the Strait of Hormuz closure. And throughout the process, Trump has continued to profit– his net worth recently reached a staggering $6.5 billion– almost triple the $2.3 billion from before his second presidency.

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