Trump Administration Weighs Federal Gas Tax Cut


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- U.S. Energy Secretary Chris Wright said Sunday the 
Trump administration is considering multiple options to ease rising fuel costs 
as retail fuel prices climbed amid ongoing tensions tied to the Iran conflict.

   Speaking on NBC News' "Meet the Press," Wright said the administration is 
"open to all ideas" aimed at lowering prices at the pump for U.S. consumers, 
including a temporary suspension of the federal gasoline tax.

   "All measures that can be taken to lower the price at the pump and lower the 
prices for Americans, this administration is in support of," Wright said during 
the interview.

   The comments came as the U.S. retail gasoline prices nationwide climbed to 
$4.581 gallon in the week ended May 4, according to data from the U.S. Energy 
Information Administration, the highest level since the conflict involving Iran 
intensified earlier this year.

   To cushion the impact of the U.S.-Iran war on U.S. fuel prices, some states 
have already implemented the tax cut.

   Georgia Governor Brian Kemp announced in March the suspension of the state's 
motor fuel excise from March 20 to May 19. Meanwhile, the Indiana Governor Mike 
Braun announced a 30-day suspension of the same tax in his state, later 
extending the measure through early June.

   U.S. retail diesel prices have also climbed sharply in recent weeks to 
$5.403 gallon as global crude oil and refined product markets reacted to 
continued disruptions tied to the Strait of Hormuz, a key transit route for 
global crude oil and fuel exports.

   Wright declined to predict whether national gasoline prices could rise to $5 
gallon but said the administration remains focused on stabilizing energy 
markets and maintaining fuel supplies.

   The Trump administration has recently increased pressure on Iran while 
weighing additional measures tied to maritime security and energy flows through 
the Strait of Hormuz, a chokepoint that handles a significant share of global 
oil exports.

    




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