Feds Push Gradual Gas Tax Relief Plan to Avoid Supply Shocks

Key Details The Trump administration is negotiating with Congress on a federal fuel tax suspension to combat rising gas and diesel prices driven by Middle East tensions. Current proposals range from Sen. Josh Hawley's 90-day plan to Rep. Jeff Van Drew's 18-month phaseout, with officials exploring language that gradually restores taxes rather than ending the relief abruptly. Why It Matters Administration officials worry a sudden end to any tax holiday could trigger panic buying before the discount expires, straining fuel supplies. The gradual approach aims to prevent unintended consequences while providing relief at the pump. Unleaded gas averaged $4.53 per gallon on May 19, up 52% since the conflict began, while diesel climbed 50% to $5.65. The Numbers The federal excise tax sits at 18.4 cents per gallon on gasoline and 24.4 cents on diesel. Interior Secretary Doug Burgum argues the savings add up quickly across millions of daily gallons consumed. Some experts remain skeptical, warning the holiday could actually reduce fuel supply by incentivizing increased purchases. Next Steps President Trump supports suspending the tax indefinitely. House lawmakers continue advancing various legislative approaches, including Rep. Brendan Boyle's dynamic plan to trigger relief whenever pump prices exceed $4 per gallon.