President Donald Trump has announced that he is looking to suspend the nation’s gas tax in the face of rising prices at the pump.
In a phone interview with CBS News, the President of the United States explained that he hopes to pause collection of the gas tax “for a period of time.”
“I think it’s a great idea,” said President Trump. “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.”
With the Strait of Hormuz blocked by Iran, gas prices has increased substantially, as national averages are now more than 50 percent higher than they were prior to the start of the conflict in February.
About one-fifth of the oil traded throughout the world typically flows through this waterway, meaning that the blockage has had a significant effect on the global market.
According to AAA, prices in the United States hit a nationwide average high of $4.52 per gallon on Sunday.
The gas tax currently sits at 18.4 cents per gallon on gas and 24.4 cents a gallon on diesel.
Halting collection of this tax could be expected to cost the government around a half billion dollars per week.
Congress would need to act in order for the gas tax to be suspended. Republican lawmakers in both the House and Senate have already pledged to introduce legislation doing so.
Several Democratic lawmakers have previously introduced legislation either pausing or lowering the gas tax.
Revenue generated by the gas tax is used to construct and repair roadways, as well as fund other transportation projects.
In March, the federal government released 172 million barrels of oil from the country’s strategic oil reserve.
Prior to this, the strategic reserve contained a total of 415 million barrels, enough to match roughly 125 days worth of crude oil net imports.
According to the Associated Press, the nation has also temporarily lifted sanctions on some Russian and Iranian oil shipments that were already at sea.
