WASHINGTON, May 10, 2026, 11:03 EDT
Energy Secretary Chris Wright signaled the Trump administration could consider suspending the federal gasoline tax, as officials scramble for options to blunt the surge in pump prices linked to the Iran conflict. On NBC’s “Meet the Press,” Wright responded to a question about whether President Donald Trump would back a pause: “We’re open to all ideas,” he said. “Everything has trade-offs.” AOL
Prices are climbing fast. According to AAA, the national average for regular gas hit $4.522 a gallon on Sunday—last month it was $4.153, and a year ago, only $3.139. Diesel? $5.647. The record for regular gas still stands at $5.016, set back in June 2022.
A gas-tax holiday—basically, a short-term break from a fuel levy—would let the White House show it’s doing something for consumers ahead of the summer driving rush. But the move skips over the main source of high prices: crude oil itself, and the shipping threats near the Strait of Hormuz, that key Gulf chokepoint for much of the world’s oil trade.
According to the Federal Highway Administration, the federal fuel tax comes in at 18.4 cents per gallon for gasoline and gasohol, and 24.4 cents per gallon for diesel and special fuels. Those revenues funnel into the Highway Trust Fund, which covers some of the nation’s road and transit spending.
Speaking to CBS on Sunday, Wright stopped short of predicting a market top. “I don’t know the future of gas prices,” he said. He pointed instead to the need to end Iran’s nuclear program and reopen the Strait of Hormuz as crucial for stabilizing energy markets. CBS News
Oil prices swung on Friday, with Brent crude closing at $101.29 a barrel after U.S.-Iran clashes. U.S. West Texas Intermediate finished at $95.42. “Treading water,” said John Kilduff of Again Capital. Phil Flynn at Price Futures Group described the session as a “headline-o-rama game.” Reuters
Saudi Aramco’s Amin Nasser on Sunday flagged that roughly 1 billion barrels have vanished from global supplies in just two months, cautioning that simply reopening shipping routes won’t snap the oil market back to normal. The company has relied on its East-West Pipeline to steer clear of Hormuz, a route Nasser described as a “critical lifeline.” Reuters
Aramco stands out with a cushion most competitors lack as the Gulf faces fresh turmoil. The Saudi oil giant posted a 25% surge in first-quarter earnings, with its pipeline now pumping at full 7 million barrels a day—enough to soften the blow from supply jitters.
Citi on Friday stuck with its base case that the Hormuz disruption fades by end-May, though it flagged higher short-term oil risks as U.S.-Iran talks toughened. The bank held its Brent outlook steady at $120 a barrel for up to three months, arguing markets are “under-pricing duration and tail risks.” Reuters
Trump faces a challenge here: a gas-tax pause might not measure up to the scale of the issue. He can’t pull it off solo—the president needs Congress to sign off. That federal tax brings in over $23 billion annually for highways and transit, and some industry groups argue drivers may not see the entire benefit at the pump.
Democrats were ahead on this front. Back in March, Senator Mark Kelly of Arizona introduced a bill aiming to pause the 18.4-cent-per-gallon gas tax until Oct. 1, and his proposal included a mandate for the Treasury Department to track if the cost break actually showed up at the pump for consumers.
Drivers will see simple numbers, but the picture isn’t whole. Dropping the federal tax might trim a few cents per gallon, provided gas stations pass along the benefit. But crude prices—still the main driver—are tied much more tightly to Hormuz, ongoing Iran discussions, and whatever traders decide after the latest headline than to any tax tweak.
