Federal gas tax suspension aims to lower fuel prices at the pump

HICKORY, N.C. — President Donald Trump announced his support this week for a temporary suspension of the federal gasoline tax.

This measure, if enacted, would remove an 18.4-cent-per-gallon charge at the pump, aiming to lower fuel prices for drivers.

A temporary suspension of the federal tax could save drivers approximately $3 on a full tank of gasoline.

For commercial truckers, who pay a federal tax of just more than 24 cents per gallon on diesel, the savings would be even greater.

This federal gasoline tax, however, is a significant revenue source, generating over $2 billion monthly for federal highway and public transit programs.

Customers expressed varying views on the proposed tax holiday. Tiffany Clark, a customer, emphasized the importance of even small savings.

“Every cent counts, especially when it comes to your wallet…so maybe,” Clark said.

Carolyn Benfield, another customer, considered it a short-term fix. “I don’t think it’s a permanent solution, but maybe a temporary solution,” Benfield said.

Truck drivers, facing higher fuel costs, anticipate more substantial relief.

Anthony Ermis, a truck driver, highlighted the increased financial burden. “It usually takes about $600. So now I spend a thousand dollars. So like a 50-60% jump,” Ermis said.

The immediate impact on pump prices if the tax is suspended might vary, according to industry experts.

Patrick De Haan, head petroleum analyst at GasBuddy, indicated that rising oil prices could offset the reduction.

“If oil is actively climbing … the Strait of Hormuz continues to be closed motorist may not actually see that 18.4 cent reduction at the pump very quickly. It could be masked by a corresponding rise in the wholesale price of gasoline,” Haan said.

However, analysts suggest drivers could see the full reduction if oil prices begin to fall.

The potential loss of revenue from the federal gas tax raises concerns about funding for infrastructure.

Charles Morgan, a customer, questioned the overall benefit of the tax cut, stating, “It would help, but it’s not gonna help that much.”

Separately, North Carolina’s motor fuel tax is more than 41 cents per gallon, and leaders there have been reluctant to suspend it due to its importance to road projects. Neighboring South Carolina has a state gas tax of 28 cents.

The North Carolina Department of Transportation released a statement regarding the motion, saying:

“We are aware that a suspension of federal gas taxes is being considered and are monitoring the situation closely. Federal funding accounts for about 24% of all of NCDOT’s revenues and about 45% of available funding for capital projects.”

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