President Donald Trump confirmed that his administration is considering temporarily suspending the federal gasoline tax in the United States, a measure that, if ultimately approved by Congress, could reduce the cost associated with each gallon of fuel by up to 18.4 cents.
"We are considering it," Trump responded on Tuesday when reporters directly asked him if the federal gas tax should be suspended.
The proposal comes at a time when fuel prices remain well above those recorded a year ago, although they have started to decline in recent days.
The latest data from the U.S. Energy Information Administration (EIA) placed the national average price of regular gasoline at 4.354 dollars per gallon during the week of October 5, 11.1 cents lower than the previous week.
How much federal tax is currently paid per gallon?
The federal gasoline tax is currently 18.4 cents per gallon.
The Federal Highway Administration of the United States indicates that this rate has remained the same since 1997.
Of those 18.4 cents, 18.3 correspond to the general gasoline tax, and an additional 0.1 cents fund the federal program aimed at addressing leaks from underground fuel tanks.
The rate is also established in Title 26, Section 4081 of the United States Code.
How much could a driver save?
If Congress were to completely suspend the 18.4 cents per gallon, and the savings were fully passed on to the consumer, the benefit would depend on the size of the tank and the amount of fuel purchased.
10 gallons: up to $1.84 in savings.
12 gallons: up to $2.21.
15 gallons: up to $2.76.
18 gallons: up to $3.31.
20 gallons: up to $3.68.
For a driver who consumes 50 gallons a month, the theoretical savings would be approximately 9.20 dollars per month. With a consumption of 100 gallons per month, it would amount to around 18.40 dollars.
However, those amounts represent the theoretical maximum savings.
The elimination of a tax does not necessarily guarantee that every cent will immediately be reflected in the prices at service stations. Part of the benefit may be absorbed by producers, distributors, or simultaneous changes in the wholesale price of fuel.
Trump cannot eliminate the tax on his own
Another important point is that the suspension has not yet been approved.
The tax is established by federal law, which means the president cannot simply eliminate it through an executive order.
To suspend it, it would be necessary for the Congress to approve legislation temporarily modifying the tax obligation.
Trump had previously suggested months ago the possibility of reducing or suspending this tax while prices remained high.
This Tuesday, it was reaffirmed that the administration is considering the option, but so far no announcement has been made regarding how long a potential suspension would last or what legislative project it would support.
Why does this tax exist?
The revenue generated from the federal gasoline tax does not simply go into the government's general fund.
Most of it is allocated to the Highway Trust Fund, the federal fund used to finance roads, bridges, public transportation systems, and other infrastructure projects.
According to the Federal Highway Administration, taxes on gasoline, diesel, tires, and certain heavy vehicles are the main sources of funding for that fund.
This means that a potential suspension would raise a second issue to address: how to compensate for the revenue that would no longer be received for infrastructure.
Congress could, for example, temporarily replace that money with resources from other allocations, as some states have done with their own fuel taxes.
It's not the same as Trump's measure on diesel
The possibility of suspending the gas tax should be distinguished from another measure that Trump already implemented this week.
On October 5, the president signed an emergency executive order concerning diesel fuel prices.
The order temporarily allows for the expanded use on roads of the so-called dyed diesel or "red diesel", which is typically reserved for agricultural uses and other off-road work and has different tax treatment.
Trump instructed the Department of the Treasury to assess the legal possibility of deferring certain obligations related to the tax on that fuel between October 5 and December 31.
He also ordered that the Internal Revenue Service (IRS) not impose certain federal penalties for the use of dyed diesel on highways during that period.
The White House has explained that the goal is to temporarily reduce costs for farmers, truck drivers, and other workers affected by the rising price of diesel.
But there is a fundamental difference: the order regarding diesel does not equate to a general suspension of the federal tax on gasoline used by private vehicles.
Gasoline prices have begun to drop, but it remains expensive
The proposal comes after several months of heightened volatility in the U.S. energy market.
The EIA reported that regular gasoline averaged 4.354 dollars per gallon nationwide during the week ending October 5.
A week earlier, it was at $4,465.
The drop represents some relief, but fuel still costs approximately 1.23 dollars more per gallon than it did a year ago.
The situation is particularly relevant for the CiberCuba audience in Florida, where hundreds of thousands of families rely on their cars daily to get to work.
In Florida, prices have also started to drop
CiberCuba reported this week on a significant drop in gasoline prices in South Florida following the steep increase observed in September.
The state average stood on Monday at approximately $4.06 per gallon, according to AAA.
In Miami-Dade, the average hovered around $4.15; Fort Lauderdale, $4.16; and West Palm Beach and Boca Raton, approximately $4.26.
Despite the recent declines, prices remain well above those of a year ago.
How would savings look in Miami?
Taking an approximate price of $4.15 per gallon in Miami-Dade, filling a 15-gallon tank costs around $62.25 before accounting for slight differences between stations.
If the federal tax were completely eliminated and the 18.4 cents were fully passed on to the consumer, the equivalent price would be approximately $3.97 per gallon.
That same 15-gallon tank would cost about 2.76 dollars less.
It may not be a significant reduction with just one visit to the gas station, but for drivers who cover many kilometers each month, delivery workers, app drivers, or families with multiple vehicles, the accumulated savings would be greater.
The decision now rests with Congress
For the moment, drivers should not expect the 18.4 cents to disappear immediately from gas stations.
Trump has confirmed that the suspension is under consideration, but a legislative proposal that can be approved by Congress and signed by the president is still needed.
It should also be determined how long it would last, how the loss of revenue from the Highway Trust Fund would be compensated, and whether the savings would effectively be passed on to consumers.
Meanwhile, gasoline prices continue to decline from the highs of September, although they remain high enough to keep fuel costs among the primary economic concerns for many American families.
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