President Trump calls for suspension of Federal Gas Tax as Iran War drives prices higher
President Trump calls for suspension of Federal Gas Tax as Iran War drives prices higher
As the conflict in Iran continues to destabilize global energy markets, Bay Area drivers are facing a difficult reality at the pump. With prices in California now averaging $6.15 per gallon, President Trump is calling on Congress to temporarily suspend the federal gas tax to provide a little relief for American families.
SAN LEANDRO, Calif. - As the conflict in Iran continues to destabilize global energy markets, Bay Area drivers are facing a difficult reality at the pump. With prices in California now averaging $6.15 per gallon, President Trump is calling on Congress to temporarily suspend the federal gas tax to provide a little relief for American families.
The plan involves temporarily suspending the federal gas tax, a move that requires approval from a divided Congress.
Pain at the Pump
"It seems like every day things are going up skyrocket," said Sammur Saied while fueling up in San Leandro. "I’m barely making it."
According to AAA, the pain is widespread. The national average for a gallon of regular gas has climbed to $4.53, but California remains the most expensive state in the nation. Local prices are up roughly $1.40 compared to this time last year, driven by the closure of the Strait of Hormuz.
The Federal Plan
In response to the surge, President Trump is asking lawmakers to pause the federal gas tax which currently sits at 18.4 cents per gallon.
"You know it’s a small percentage, but it’s still money," Trump told reporters at the White House on Monday.
While the president cannot suspend the tax unilaterally, the plan is gaining traction on Capitol Hill. Lawmakers from both houses have indicated they will introduce legislation to get the ball rolling before the summer travel season.
Central Valley Congressman Josh Harder is among those backing the plan but warns that more must be done.
"This has to be just the first step," said Rep. Harder. "This is an important step, but ultimately, it’s not going to do that much unless it’s combined with ending the war and building more energy projects so we can have a durable situation of prices going into the summer."
Critics of the plan point to the potential impact on the nation's infrastructure. The federal gas tax currently provides more than $23 billion in annual revenue for the Federal Highway Administration and public transit programs.
Turning to Public Transit
At the Bay Fair BART station in San Leandro, riders offered their reaction to the proposed tax cut.
"Honestly, I don’t think it would help that much," said BART rider Karriana Linnen.
"Our infrastructure on highways is already terrible as is. At what cost?" added another rider, Glen Clark.
Both BART and Muni are reporting an uptick in March ridership year over year, but say other factors, including sports events and concerts, could be driving the surge.
"Even though I gotta take a longer commute and be around a whole lot of people, it’s kind of better than spending that extra cash," said Clark.
Featured
Bay Area gas prices skyrocketing; new record could be set within days
Gas and diesel prices are surging across California with no sign of relief in sight for months.