Gas Price Chaos: Trump Eyes Tax Suspension!

With gas prices surging past $4.50 per gallon amid the U.S.-Iran conflict, the Trump administration is now openly weighing a suspension of the federal gas tax — a move that could deliver immediate relief to American families getting hammered at the pump.

Quick Take

Energy Secretary Chris Wright confirmed the administration is open to suspending the 18-cent-per-gallon federal gas tax to provide immediate relief to drivers.
The Trump administration also waived summer fuel blend rules, allowing cheaper E15 ethanol fuel to be sold nationwide starting May 1, 2026.
Gas prices climbed to roughly $4.52 per gallon nationally in May 2026, driven largely by disruptions tied to the ongoing U.S.-Iran conflict.
The Department of Energy projects American drivers will spend $11 billion less on gas overall in 2026 compared to prior years, though current prices tell a more complicated story.

Administration Eyes Gas Tax Suspension as Prices Bite

Energy Secretary Chris Wright stated in a May 2026 interview that the administration is open to suspending the 18-cent-per-gallon federal gas tax as a direct relief measure for American families [3]. Wright said plainly that “all measures that can be taken to lower the price at the pump” are on the table. The proposal has gained traction inside the White House as national average gas prices climbed sharply, with the Iran conflict disrupting global oil supply chains and putting real pressure on household budgets.

Separately, the Trump administration waived Environmental Protection Agency summer fuel blend restrictions starting May 1, 2026, allowing E15 ethanol-blended fuel — typically several cents cheaper per gallon — to be sold at gas stations nationwide during the summer driving season [8]. The American Petroleum Institute endorsed the move. Both actions reflect an administration actively searching for levers to pull as consumers feel the pain of elevated prices.

The Iran Factor and the Reality at the Pump

The U.S.-Iran conflict has emerged as the dominant driver of the current price spike. Trump has promised that gas prices will fall sharply once the war reaches resolution, predicting prices would “drop like a rock” after hostilities end [4]. However, ExxonMobil’s chief executive offered a more measured timeline in early May 2026, noting that even if the Strait of Hormuz reopened in mid-May, it would take one to two months for oil flow normalization and delivery to reach consumers [4]. Federal Reserve Chairman Jerome Powell also acknowledged in late April 2026 that sustained high gas prices were generating inflationary pressure that could worsen broader inflation if prices stayed elevated [4].

National average gas prices reached approximately $4.52 per gallon in mid-May 2026, a level not seen since mid-2022 [4]. The Department of Energy’s “State of American Energy” report maintains that drivers are on pace to spend $11 billion less on gas in 2026 compared to recent years, projecting average household gas spending of $2,083 annually [3]. Critics have challenged that figure given current market conditions, though no independent forensic analysis of the Department of Energy’s methodology has been published to directly refute the underlying data.

Competing Pressures on the Affordability Promise

Beyond the Iran conflict, a separate debate has emerged over the administration’s liquefied natural gas export policy. Public Citizen, a left-leaning consumer advocacy group, published an analysis claiming American households paid $12 billion more for natural gas since Trump took office, attributing the increase to an executive order signed on inauguration day that prioritized liquefied natural gas export approvals [2]. The administration’s own report counters that the United States is now producing nearly as much natural gas as Russia, Iran, and China combined — roughly 110 billion cubic feet per day — representing record domestic output [3].

Q: "Would you support suspending the federal gas tax?"

Wright: "Ya. All measures that can be taken to lower the price at the pump…this administration is in support of."

Q: "You're saying President Trump would be open to suspending the federal gas tax?"

Wright: "We're open to… pic.twitter.com/gRClFisVjS

— The Bulwark (@BulwarkOnline) May 10, 2026

The gas tax suspension proposal still faces a legislative hurdle: Congress controls the federal gas tax, and any suspension would require action on Capitol Hill. The 18-cent-per-gallon federal tax funds the Highway Trust Fund, which finances road and bridge infrastructure, meaning a suspension carries real fiscal trade-offs. No formal Congressional Budget Office scoring or House Ways and Means Committee markup has been announced as of mid-May 2026. Still, with prices this high and midterm positioning already underway, the political incentive to act — and to be seen acting — is real. American families filling up their tanks don’t care about policy nuance; they care about what the number on the pump says when they swipe their card.