President Donald Trump indicated he’s not yet ready to push for a suspension of the federal gas tax, but that it remains an option as his administration tries to combat surging energy prices.
Asked by a reporter about that option during the Cabinet meeting, Trump said, “We’ve thought about it, I guess,” and suggested that states suspend their taxes on fuel.
“It’s something we have in our pocket if we think it’s necessary,” he added.
He segued into talking about the stock market and was asked again about the possibility of suspending the federal gas tax, which is 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel fuel. That does not include state taxes, which often are higher.
Trump cannot suspend the federal tax on his own; Congress would have to approve.
Oil prices rose 5 percent on Thursday, rebounding from the previous session's losses, on worries that a prolonged Middle East conflict could continue to disrupt supplies.
Brent futures were up $5.26, or 5.2 percent, to $107.48 a barrel at 10:57 am EDT, close to the session high of $107.84. U.S. West Texas Intermediate crude futures gained $3.53, or 4 percent, to $93.85 a barrel, after rising to as high as $94.84.