Trending 
United States President Donald Trump said on Monday that he plans to suspend the federal gasoline tax as rising energy prices linked to the Iran war continue to affect consumers.
Speaking at the White House, Trump said the suspension would remain in place for as long as necessary, noting that although the tax represents a relatively small portion of fuel costs, it would still provide some relief to consumers.
“It’s a small percentage, but you know it’s still money,” he said.
According to data from the US Energy Information Administration, federal taxes on fuel in the United States currently stand at 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel.
Any suspension of the tax would require approval from Congress, where Republicans hold narrow majorities in both chambers.
Trump ally and Republican senator Josh Hawley said he would introduce legislation on Monday to support the proposal, while Republican lawmaker Anna Paulina Luna also pledged to sponsor a similar bill in the House of Representatives later this week.
Fuel prices in the United States have risen sharply since the conflict with Iran escalated, with gasoline and diesel prices reportedly increasing by about 50 per cent since late February.
The rise has been linked to disruptions in global energy markets following Iran’s retaliatory actions, including the near closure of the Strait of Hormuz, a major shipping route through which roughly one-fifth of the world’s oil and natural gas supplies pass.
Data from the AAA motor club on Monday showed that the average price of regular gasoline in the United States had climbed to 4.52 dollars per gallon, while diesel reached 5.64 dollars per gallon.
Analysts say suspending the federal fuel tax could reduce prices by approximately four per cent, although state-level fuel taxes would remain unaffected.
