Federal gas tax suspension proposed as fuel prices rise

As U.S. pump prices approach $4 amid tensions with Iran, some lawmakers have proposed temporarily suspending the federal gas tax; the White House says the president has "thought about" it, but Congress would need to approve any suspension.

Gasoline prices in the United States have risen toward $4 a gallon as tensions with Iran have affected oil markets. In response, some lawmakers have proposed a temporary suspension of the federal gasoline tax. The White House said the president has "thought about" such a suspension and suggested states could lower their fuel taxes. Any change to the federal tax would require approval from Congress. Key points: - Reporters say national pump prices are approaching $4 a gallon amid geopolitical tensions involving Iran. - The proposal discussed is a temporary suspension of the federal gasoline tax (18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel); Congress must pass legislation to enact such a suspension. - Some senators have introduced bills to suspend the tax through Oct. 1, and officials report the measures are unlikely to advance without presidential support. Summary: Lawmakers have proposed a temporary federal gas tax suspension in response to rising fuel prices, and the president has said he has "thought about" the idea. The federal gas tax currently raises more than $23 billion per year for highway and public transit programs. Any suspension would require congressional approval, and the near-term prospects for enactment are uncertain.