PHILADELPHIA (KYW Newsradio) — President Trump floated the idea of suspending the federal gas tax to provide some relief for drivers who have been hit hard at the pump because of the war in Iran. The president would need congressional approval to make it happen.
At the Sunoco on Midvale Avenue, close to Kelly Drive, it’s $4.63 for regular and $5.85 for diesel. And Volanda Bowen of Nicetown was not pleased while filling up this morning.
“I don’t even want to drive but I’m only driving today because my niece was in a car accident and I’m helping her out. Other than that, I would rather catch the bus,” she said.
If the federal tax of 18.4 cents for a gallon of gas and 24.4 cents for diesel was suspended, Patrick DeHaan with Gas Buddy says the relief would come quickly.
“So if the tax were to become effective, let’s say on midnight on Memorial Day, it would be generally a fairly swift reduction since stations would no longer need to collect this tax,” he said.
But according to analysis from the Wharton School at Penn, customers would save 13 cents a gallon as suppliers wouldn’t pass on the full savings. And experts say prices will stay high as long as there is uncertainty in Iran and the Strait of Hormuz.
Lawmakers in both parties have expressed interest in temporarily pausing the tax to at least ease the blow.
If the tax were suspended, it would mean less money for highway maintenance and public transportation.
