US Fuel Prices Soar: Trump Announces Petrol Tax Suspension Plan

US President Donald Trump Announces Plan to Waive Petrol Tax Amid Rising Consumer Costs

President 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. However, Senator Josh Hawley, a Republican from Missouri, plans to introduce legislation to suspend the tax, which requires an act of Congress.

The decision comes amid rising petrol prices, with the average price for a gallon of regular petrol now at $4.52, up from $2.98 when the US-Israel war on Iran first began. Oil prices have surged since the ceasefire was put “on life support,” according to Trump.

US Energy Secretary Chris Wright hinted at the idea of suspending the tax on Sunday, stating that the White House is considering it. However, other lawmakers, including Senator Mark Kelly, a Democrat from Arizona, had previously proposed suspending the tax until October.

The impact of the waiver could be felt across the US, particularly in states that have also reduced their own petrol taxes. Petrol prices have continued to climb since the initial strikes on Iran, with Brent crude futures up $3.17 and US West Texas Intermediate crude up $2.90.

Other major oil and gas companies are trending upward on Wall Street, including Shell, Exxon, BP, and Chevron. Trump was also asked about a potential bailout for the airline industry, which has taken a hit since the war on Iran began.

Source: Al Jazeera