Sen. Hawley is planning legislative action to support President Trump’s efforts to waive the gas tax due to rising consumer costs.
US President Donald Trump announced he would cut the federal tax on gasoline by 18 cents to offset the soaring price of gasoline since he said the ceasefire with Iran was “on life support.”
President Trump said Monday he would suspend the gas tax, but did not specify an end date.
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“Yes, we’re going to eliminate the gas tax for a period of time, but when we run out of gas, we’re going to phase it back in,” Trump told CBS News.
President Trump later told reporters he would waive the tax, which generates $2.5 billion for U.S. road infrastructure, “until it’s appropriate.”
The US government has hinted at the idea that On Sunday, U.S. Energy Secretary Chris Wright told NBC News’ “Meet the Press” that the White House is considering suspending the tax.
The Republican president has claimed to waive taxes, but that is not the White House’s purview. Suspending federal taxes would require legislation from the U.S. Congress.
But Republican Sen. Josh Hawley of Missouri, a key ally of President Trump, said on social media platform X that he would introduce legislation to do so on Monday.
Democratic Sen. Mark Kelly of Arizona proposed in March to suspend the tax until October.
“We expect it to pass, but there may be delays in the process. It also signals that President Trump doesn’t think the cuts will end soon and is trying to appease American consumers,” Rachel Ziemba, a non-resident senior fellow at the Center for a New American Security, told Al Jazeera.
“The impact could be even greater in states that have lowered their own gasoline taxes, potentially increasing regional gasoline price differentiation.”
States in the United States also tax gasoline, with Indiana, Kentucky, and Georgia moving to cut taxes to ease the cost of gasoline for consumers.
Gasoline prices have continued to rise since the first strike against Iran in the US-Israel war on February 28th. The average price of a gallon of regular gasoline is $4.52, compared to $2.98 when the strike first began, according to the American Automobile Association, which tracks daily gas prices.
But oil prices soared on news that the cease-fire was on the rocks. Brent crude oil futures rose $3.17 (3.13%) to $104.46 per barrel, while US West Texas Intermediate crude oil futures rose $2.90 (3.04%) to $98.32 per barrel. Brent hit a trading high of $105.99, while WTI hit a high of $100.37.
On Wall Street, stocks of major oil and gas companies are on the rise. Shell rose 1.6% in intraday trading, Exxon rose 3.1%, BP rose 2% and Chevron rose 1.7%.
Airline bailout?
President Trump was also asked by CBS on Monday whether there was any relief planned for the airline industry, which has suffered since the start of the war against Iran.
The president told the same media that a bailout package “hasn’t really been offered” and that “the airlines are not doing badly.”
But earlier this month, low-cost carrier Spirit Airlines ended its 34-year history. Court documents say the airline was shut down due to “recent geopolitical events that have resulted in significant and sustained increases in fuel prices.”
This comes as other major U.S. airlines raise prices. United Airlines announced in April that it would raise fares by 20% in response to rising jet fuel costs.
