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US Boomerang Weapon Bites Harder, Trump Backs Emergency Measures

| Source: CNBC Translated from Indonesian | Economy
US Boomerang Weapon Bites Harder, Trump Backs Emergency Measures
Image: CNBC

US President Donald Trump officially expressed his support on Monday (11/5/2026) for suspending the federal petrol tax of 18.4 cents amid a surge in fuel prices that is strangling US citizens due to the outbreak of the Iran war. This step is taken in response to the anger of drivers in the United States who must face increasingly ballooning living costs.

Citing Reuters, President Trump reaffirmed his commitment to implementing this tax cut to provide economic relief for the public. The decision to abolish this tax requires approval from Congress, which is currently controlled by Trump’s Republican Party allies, through the passage of new legislation.

“Yes, I will reduce it,” Trump told reporters when asked whether he would suspend the tax.

When asked further about how long the petrol tax suspension would be in place, Trump gave a brief answer in the Oval Office. “Until it feels right,” said Trump.

In line with this desire, Senator Josh Hawley, a Republican politician from Missouri, stated that he is introducing legislation on Monday to suspend the petrol tax and the diesel tax of 24.4 cents for the next 90 days.

Petrol price increases in the US have continued to climb since the war began on 28 February, particularly because Iran has effectively closed the Strait of Hormuz, which is the main distribution route for 20% of the world’s oil. Based on data from the AAA motoring club, the average petrol price in the US reached US$4.52 (Rp78,422) per gallon on Monday, the highest figure since 2022 when prices peaked at US$5.01 (Rp86,924).

Nevertheless, Senate Majority Leader John Thune appeared hesitant on Monday regarding the petrol tax freeze plan. Thune argued that the best way to lower petrol prices is to reopen the Strait of Hormuz, while noting that the tax has long been used to fund road repairs.

“We’ll see where our members stand later,” said Thune.

Earlier in March, several Democratic politicians, including Senator Mark Kelly from Arizona, had proposed suspending the tax that generates around US$2.50 (Rp43,375) billion per month for road funding until October. Since 2008, more than US$275.00 (Rp4,771,250) billion—including US$118.00 (Rp2,047,300) billion from the 2021 infrastructure act—has been diverted from general funds to finance road repairs.

Trump also responded to CBS on Monday regarding bailout plans for airlines struggling against surging jet fuel costs. He mentioned that the plan has not yet been formally presented to him and assessed that the aviation industry is still holding up reasonably well.

“The airlines are not performing poorly,” said Trump.

This statement comes as low-cost carriers request US$2.50 (Rp43,375) billion in aid, and even Spirit Airlines halted operations on 2 May due to high jet fuel prices that made their restructuring plans impossible. Several states like Indiana, Kentucky, and Georgia have also moved to cut petrol taxes to help consumers.

The rising fuel costs, which also trigger increases in food and other goods prices, pose a political vulnerability for Trump and the Republicans who are seeking to retain control of Congress in the upcoming November midterm elections. Trump acknowledged that the tax only covers a small percentage of the overall petrol cost for consumers, but he feels this step remains important.

“But it’s still money,” said Trump.

In addition to the tax cut plan, Trump has taken several other actions to stabilise energy prices, such as lending crude oil from the Strategic Petroleum Reserve and suspending the Jones Act shipping law to facilitate the transfer of oil and fuel.

However, Bob McNally, founder and president of Rapidan Energy Group who previously served as a White House energy adviser to former President George W. Bush, assessed that these steps may not have much impact if the war continues to block shipments in the Middle East.

“If the federal petrol tax is suspended but the Strait of Hormuz remains closed, consumers will hardly notice it because pump prices will continue to climb,” said McNally.

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