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Trump weighs US gas tax holiday but the federal cut may save drivers only about two dollars
International
Published on 11 May 2026
Federal gas tax is set in cents and savings are limited
US President Trump is considering a temporary suspension of the federal gas tax to ease soaring fuel prices. The federal levy stands at 18.4 cents per gallon for gasoline and 24.4 cents for diesel. Even if paused, analysts expect only modest relief—roughly $2 per tank for many sedans—while state-level tax cuts could deliver larger discounts.
- Federal gas tax is 18.4 cents for gasoline
- Diesel faces a higher federal rate at 24.4 cents
- A suspension may cut costs by about $2 per tank
- State tax relief already offers bigger price drops
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times