US Fuel Prices Rise: Trump Announces Petrol Tax Suspension Plan

US President Donald Trump has announced plans to suspend the federal petrol tax, citing rising consumer costs and surging oil prices. The 18-cent tax generates $2.5 billion in revenue for US roadway infrastructure.

Trump stated that he would waive the tax “till it’s appropriate,” but noted that this is not within his authority as president. Instead, suspending a federal tax requires an act of Congress.

Senator Josh Hawley, a Republican from Missouri, has announced plans to introduce legislation to suspend the tax. Hawley stated that he will introduce the bill on Monday.

Other states have also taken steps to reduce petrol taxes, with Indiana, Kentucky, and Georgia cutting their own taxes in an effort to provide relief to consumers. Petrol prices have continued to rise since the US-Israel war on Iran began, with the average price for a gallon of regular petrol now standing at $4.52.

The news comes as oil prices surge due to concerns over the ceasefire with Iran. Brent crude futures were up 3.13 percent, while US West Texas Intermediate crude was up 3.04 percent. Stocks for oil and gas giants are trending upward on Wall Street.

Trump was also asked about a potential bailout for the airline industry, which has been affected by rising fuel costs. The president stated that no such plan had been presented, but noted that “the airlines are doing not badly.”

Source: Al Jazeera