President Donald Trump told CBS News on Monday that he hopes to suspend the federal tax on fuel as prices near all-time highs.
"I think it's a great idea," Trump told CBS. "Yup, we're going to take off the gas tax for a period of time, and when gas goes down, we'll let it phase back in."
The move could knock 24.4 cents off the price of diesel and 18 cents off gasoline in short order if implemented.
[Related: Why is diesel getting so much more expensive than gasoline?]
Trump alone doesn't have the power to remove the tax, which was enacted by Congress, but members of his party in the Senate and House quickly voiced their support. Senator Josh Hawley and Representative Anna Paulina Luna both said they would introduce legislation aiming to suspend the tax.
"American families need this relief on gas prices," wrote Luna. "My office will be working directly with President Trump to ensure we deliver this win for the American people"
One senator, Utah's Mike Lee, seemed to think Trump didn't go far enough.
"The federal gasoline tax was introduced to build the interstate highway system. That system is now built," Lee wrote on Twitter/X. "We should now repeal the federal gasoline tax and let each state maintain its portion of the interstate highway system -- with its own revenue -- as was the plan from the beginning."
Diesel prices have soared dramatically following the late February U.S.-Israeli attack on Iran, which retaliated by closing the Strait of Hormuz, a vital waterway through which about 20% of the world's crude oil flows.
Energy prices have risen globally since, with multiple states setting all-time high prices. Freight spot rates have risen in concert with diesel's upswing, but not at the same rate.
[Related: Spot rates hit all-time high as diesel cost surges again]
Trump's move along with the Congressional Republicans follows a March 20 tax suspension in Georgia, though that's set to expire on May 19.
This chart from the U.S. Energy Information Administration shows taxes make up about 17% of diesel pump prices, which includes the federal tax as well as state taxes. Prices shown are from January, before pump prices spiked significantly.EIA
Georgia Gov. Brian Kemp signed a bill into law suspending the fuel tax in the state for 60 days to help motorists and truck drivers deal with skyrocketing gas and diesel prices. Georgia's excise tax on gasoline is currently 33.3 cents per gallon and 37.3 cents per gallon of diesel.
This guidance document released by Georgia after the suspension advised all motor carriers licensed with the International Fuel Tax Association (IFTA) and traveling in Georgia were exempt from motor fuel excise tax during period of suspension.
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