CNN: Trump Plans to Suspend Federal Petrol Tax

Washington (ANTARA) - United States President Donald Trump stated on Monday (11/5) that he intends to suspend the federal tax on petrol amid soaring fuel prices during the US-Iran conflict, according to CNN. However, the proposal still requires Congressional approval before it can be implemented. Congress has never approved a suspension of the federal fuel tax despite similar calls during previous sharp price spikes, the report stated. In 2022, the Democrat-controlled Congress rejected a request from Joe Biden, who was then US President, to suspend the tax. Petrol prices in the US have risen to a national average of $4.52 (1 US dollar = Rp17,415) per gallon, up from $2.98 before the conflict began on 28 February, as oil tanker ships have been unable to safely pass through the Strait of Hormuz despite the ceasefire. The federal tax is set at 18.4 cents per gallon for petrol and 24.4 cents for diesel. However, suspending the tax would not significantly reduce the burden on drivers. According to CNN, retailers and other players in the supply chain typically do not pass on all the savings to consumers. The report also mentioned that suspending the fuel tax could harm the Highway Trust Fund, which relies on fuel tax revenue to support transportation spending. A five-month suspension would reduce revenue by approximately $17 billion, or 46 percent of the projected fuel tax revenue entering the fund this fiscal year.