Energy Secretary Chris Wright this past weekend said the Trump administration is floating the idea of suspending the federal gas tax to lower fuel costs for American consumers amid the war in Iran.
Gas taxes provide funds for highway repair and maintenance, as well as other government infrastructure projects, according to the Tax Foundation.
“All measures that can be taken to lower the price of at the pump and lower the prices for Americans, this administration is in support of,” Wright said during a May 10 appearance on NBC’s “Meet the Press” after being asked about pausing the gas tax.
So far three states — Utah, Indiana and Georgia — have either partially or fully suspended their state gas tax, according to USA TODAY.
As of Monday, May 11, AAA said Michigan residents were paying some of the highest prices in the country, on average, for gas and diesel fuel. The national average was $4.52 for regular unleaded while the Michigan average was $4.723 per gallon.
Michigan’s highest average prices were mostly in northern Lower Peninsula, while the western two-thirds of the U.P. were reporting some of the lowest prices statewide.
The federal gas tax is 18.3 cents per gallon, and 24.3 cents per gallon for diesel fuel. An additional 0.1 cent per gallon is levied to pay for leaking underground storage tanks, according to the U.S. Energy Information Administration
In addition to federal taxes, Michigan motor fuel taxes are 52.4 cents per gallon, according to the Michigan Department of Treasury.
Prior to 2026, Michigan collected 31 cents per gallon in motor fuel taxes, plus 6% in sales tax, which meant taxes increased with the price of the fuel.
State officials say most of the money collected goes to the Michigan Transportation Fund for state highways and county roads, among other things. About 2% of the funds support local recreation projects.
Why are gas prices so high?
Fuel prices have increased dramatically in recent weeks, in large part because of the continuing conflict with Iran that has blocked about 20% of the world’s supply of oil and gas from transiting the Strait of Hormuz.
Additionally, U.S. gas prices typically peak between April and June when refineries switch to a more expensive “summer blend” of gasoline, which functions better in warm weather.
“President Trump remains committed to fully unleashing American energy dominance, lowering costs, and putting more money back in the pockets of hardworking American families. As the President continues to exert maximum leverage over Iran with the ongoing successful blockade to bring this conflict to an end, we will see global energy markets stabilize and gas prices plummet back to the multi-year lows Americans enjoyed prior to the start of Operation Epic Fury,” said White House spokesperson Taylor Rogers.
USA Today contributed reporting.
Jalen Williams is a trending reporter at the Detroit Free Press. Contact him at jawilliams1@freepress.com
This article originally appeared on Detroit Free Press: U.S. officials consider gas tax suspension. How much it would matter
Reporting by Jalen Williams, USA TODAY NETWORK / Detroit Free Press
USA TODAY Network via Reuters Connect
