US-Iran War Fuels Oil Price Hike, Trump Considers Suspending Federal Fuel Tax to Ease Impact

US-Iran War Key News

(Central News Agency, Washington 11th, Comprehensive Foreign Report) US President Trump today stated that he plans to temporarily suspend federal fuel taxes until the situation stabilizes, to alleviate the impact on consumers from soaring oil prices caused by the US-Iran war. The new policy requires approval from both the Senate and House of Representatives to be implemented, and oil prices are expected to decrease by about 4%.

According to AFP, Trump announced this measure while responding to reporters' questions at the White House, stating, "(The tax) is a small proportion, but you know, it's still money after all."

According to data from the US Energy Information Administration (EIA), the federal gasoline tax in the United States is 18.4 cents per gallon (approximately NT$5.81), and the diesel tax is 24.4 cents per gallon (approximately NT$7.71).

The temporary suspension of fuel taxes requires congressional review and approval, and Trump's Republican Party holds a very fragile majority in both the Senate and House of Representatives.

Trump's ally, Republican Senator Josh Hawley, stated that he would introduce a related bill today; Republican House Representative Anna Paulina Luna also stated that a bill is expected "this week."

Since Trump launched the US-Iran war, US fuel prices have risen sharply, with both gasoline and diesel soaring by about 50% since late February. Iran has retaliated by blocking the Strait of Hormuz, through which about one-fifth of the world's oil and natural gas is transported.

According to data from the American Automobile Association (AAA), the average oil price in the United States today is US$4.52 per gallon (approximately NT$143) for gasoline and US$5.64 per gallon (approximately NT$178) for diesel. After suspending federal fuel taxes, oil prices are expected to decrease by 4%.

Fuel taxes collected by individual state governments are not affected by this policy.

CNN reported that Brown University's "Iran War Energy Cost Tracker" shows that since the outbreak of the US-Iran war, the surge in gasoline and diesel prices has caused an economic impact of up to US$37 billion (approximately NT$1.1692 trillion) on US consumers.

As of this afternoon, the cumulative increase in oil prices has added an average of over US$284 (approximately NT$8978) to each American household's expenses. (Edited by Chang Ming-Hsuan) 1150512

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