The proposal, however, would still require congressional approval before it could take effect. Congress has never agreed to suspend the federal fuel tax despite similar calls during previous periods of sharply rising prices, the report said. In 2022, a Democratic-controlled Congress rejected then-President Joe Biden’s request to pause the levy.
U.S. gasoline prices have climbed to a nationwide average of 4.52 U.S. dollars per gallon, up from 2.98 dollars before the conflict began on Feb. 28, as oil tankers still could not pass safely through the Strait of Hormuz despite a ceasefire.
The federal levy stands at 18.4 cents per gallon on gasoline and 24.4 cents on diesel. But suspending it would not do much to ease drivers’ burden. According to CNN, retailers and other players in the supply chain typically do not pass all of the savings on to consumers.
The report also said a gas-tax holiday could hurt the Highway Trust Fund, which relies on fuel-tax revenue to support transportation spending. A five-month suspension would reduce revenue by about 17 billion dollars, or 46 percent of the gas-tax revenue projected to flow into the fund this fiscal year
