Trump vows to pause federal gas tax after Iran war boosts US fuel prices to four-year high

National average for gas prices has risen by well over a dollar a gallon since late February Sign up for the Breaking News US newsletter email Donald Trump pledged to suspend the US federal gas tax in an effort to reduce pressure on Americans after the US-Israel war on Iran sparked a sharp rise in fuel prices. The US president told reporters on Monday that his administration would look to pause the tax “till it’s appropriate”, as drivers count the cost of the surge in oil prices in the two months since US and Israeli forces attacked Iran. The federal gas tax – 18.4 cents per gallon for gasoline, and 24.4 cents for diesel – raises about $500m each week for the federal government. Suspending it was “a great idea”, Trump told CBS News on Monday. “Yup, 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.” He later confirmed the idea during public remarks at the White House, acknowledging the gas tax was a small percentage of the rising costs. The national average of gasoline prices hit $4.52 per gallon on Monday, nearing its highest levels since 2022, according to AAA – up from $3.14 per gallon a year ago. The increased fuel cost