Trump Administration Considers Suspending Federal Gas Tax

Energy Secretary Chris Wright said Sunday the Trump administration is “open to all ideas” to ease pain at the pump as the average U.S. price for regular gasoline reached $4.52 per gallon. Wright told NBC’s “Meet the Press” that officials cannot predict when prices will fall or whether they might rise further.

He noted that his earlier forecast of prices dropping below $3 before summer had assumed the fighting in the Iran conflict would last only four to six weeks.

Wright said he “can’t make any predictions” on the future of gas prices. The federal tax stands at 18.3 cents per gallon on gasoline and 24.3 cents on diesel. A full suspension would require congressional approval and would reduce revenue for the Highway Trust Fund. Wright added that “everything has tradeoffs.”

Iran sent its response to a U.S. peace proposal on Sunday through Pakistani mediators, according to multiple reports. A Pakistani government official confirmed that mediators received Iran’s reply and forwarded it to the U.S. The response centers on a potential memorandum of understanding.

Iranian state media separately called for Tehran to take control of seven undersea internet cables in the Strait of Hormuz. The proposal would require foreign operators to obtain permits, pay fees and follow Iranian law, with management handled by Iranian companies.

The IRGC had previously warned it could target the same cables.

President Trump said Iran has been “playing games” with the United States and the rest of the world for 47 years and that “they will be laughing no longer.” Israeli Prime Minister Benjamin Netanyahu stated separately that the war with Iran is “not over” because nuclear material in the country still needs to be removed.

Wright acknowledged short-term discomfort from the conflict. He described efforts to end Iran’s nuclear program as “massively positive” for global energy supplies and said a nuclear-armed Iran would pose a major long-term risk to regional energy flows.

He stated that energy prices will decline once free flow of traffic resumes through the Strait of Hormuz. The conflict has lasted 10 weeks, longer than initially expected by the administration.

The administration has taken several steps to mitigate the impact, including releasing oil from the Strategic Petroleum Reserve in coordination with 30 other nations, revising EPA regulations on summer gasoline blends, asking U.S. refiners to shorten spring maintenance, and waiving the Jones Act to ease fuel shipments at American ports.

Democratic lawmakers, including Sen. Mark Kelly of Arizona, have proposed legislation to suspend the federal gas tax. Wright repeated that the administration’s top priority remains ending Iran’s nuclear program.