The Conversation
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Suspending federal gas tax wouldn’t save drivers as much as they might hope – here’s what goes into the price of a gallon of gas
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An analysis of federal gas tax suspension proposals, explaining that federal and state gas taxes represent only a small portion of overall gasoline prices, suggesting drivers would see limited savings from such a policy.
Suspending federal gas tax wouldn’t save drivers as much as they might hope – here’s what goes into the price of a gallon of gas
Gas taxes – federal and state – make up only a small piece of the price of a gallon of gas. AP Photo/Jenny Kane
With gasoline prices still high – averaging over US$4.50 a gallon in mid-May 2026 – President Donald Trump said he wanted Congress to suspend the federal gas tax, which is 18.4 cents a gallon for gasoline and 24.3 cents a gallon for diesel. A bill has been introduced in the Senate, and one is expected to follow in the House, according to Politico, but their fate is unclear.
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