Gas prices have risen astronomically since the war in Iran led to the closure of the Strait of Hormuz, blocking tankers from delivering their liquid gold. Prices are some $1.385 per gallon higher than they were a year ago, with the national average price of gasoline soaring to $4.520 per gallon, and with Americans feeling the pinch and an end to the conflict out of sight, the White House under the Donald Trump administration is looking for new ways to ease the burden. Energy Secretary Chris Wright told NBC's Meet the Press that the government is "open to all ideas" that may help lower gas and diesel prices, including suspending the federal gas tax.
Energy Secretary: Trump Is Exploring All Options to Lower Gas Prices
"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," said Wright. If the federal gas tax were suspended, this would provide relief to the sum of 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel. Diesel is the lifeblood of the economy, supporting transportation, farming, and heavy industry, and with the national average now at $5.636 per gallon, diesel is just 18 cents below its all-time high (unless you're in California, where an all-time record of $7.559 per gallon was set in early April).
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President Trump told CBS News that the federal government may suspend the tax until there's more stability: "We're going to take off the gas tax for a period of time, and when gas goes down, we'll let it phase back in." In the meantime, things are so bad that thieves are drilling holes in the gas tanks of parked cars, and material prices are surging so much that car prices could jump a thousand dollars.
Suspending the Gas Tax Is Easier Said Than Done
David Paul Morris/Bloomberg via Getty Images
To suspend the federal gas tax, Congress would have to approve the move, and it could have knock-on effects for the federal government, which would lose approximately half a billion dollars a week in tax income. Still, representatives on both sides of the aisle seem to be in favor of such a move, so it may not take long to approve. Of course, discounts of 18.4 cents per gallon of gas and 24.4 cents per gallon of diesel make a small impact when prices have risen so dramatically over the last 12 months, and the best solution would be an end to the war in Iran. Unfortunately, Trump has also suggested that the ceasefire may soon come to an end, so Americans may have to wait a long time to see pricing at the pumps reach the levels they were at a year ago. At least there are now tools to help drivers find the cheapest gas in their area.
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