By David Shepardson
WASHINGTON, March 6 (Reuters) – Democratic U.S. Senator Mark Kelly proposed on Friday suspending the 18.4-cent-per gallon federal gasoline tax through October 1 in a bid to help Americans who face rising prices at the pump due to the U.S.-Israeli war with Iran.
Gas prices have risen by 35 cents per gallon to an average of $3.32 nationally over the past week, according to AAA, a U.S. travel organization that tracks fuel prices. Political analysts have said a persistent rise in gas prices could hurt President Donald Trump’s fellow Republicans in the November midterm elections as they seek to maintain control of Congress.
Kelly’s proposal, first reported by Reuters, comes in the form of legislation due to be introduced in the Senate next week. The legislation, if enacted, would direct the U.S. Treasury Department to monitor the tax suspension in a bid to ensure that the savings are passed on to consumers as lower gasoline prices.
“Suspending the federal gas tax would help bring prices down and give families some much needed relief,” Kelly said.
The White House did not immediately respond to a request for comment.
Trump told Reuters in an interview on Thursday that he is not concerned about rising U.S. gasoline prices linked to the conflict, saying “if they rise, they rise.”
Reuters reported this week that the Trump administration is considering actions aimed at combating rising energy prices in light of the war, as U.S. officials race to blunt the political and economic impact of rising fuel costs.
U.S. crude futures have jumped 35% since the war with Iran started on February 28, as the spreading conflict disrupts Middle East supplies.
In 2022, then-President Joe Biden called for a three-month suspension of the federal gasoline tax to combat record prices related to the COVID pandemic, but Congress never acted. Five states including Georgia, New York and Florida temporarily suspended state gas taxes in 2022.
(Reporting by David Shepardson; Editing by Franklin Paul and Will Dunham)
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