If President Trump follows through with his statement Monday to CBS News that he will suspend the federal gas tax “for a period of time,” it would mean a drop of more than 18 cents per gallon for Oklahoma drivers.
Fuel prices have soared since the U.S. went to war with Iran to stop the country from developing a nuclear bomb. Crude oil shipments through the Strait of Hormuz are down to a trickle as hundreds of cargo ships are stranded in part because of Iran’s military enforcement and the subsequent U.S. naval blockade.
President Trump called it “a great idea,” adding Yup, we’re going to take off the gas tax for a period of time, and when gas goes down, we’ll let it phase back in.”
Oklahoma’s current gasoline price averages $3.94 per gallon, an increase of 6 cents in the past week. The national gas tax in the state is 18.4 for every gallon pumped. Doing the math, it would mean the $3.94 current average price for gasoline would fall to $3.76 per gallon.
The federal tax on diesel fuel is higher at a cost of 24.4 cents per gallon. Oklahoma’s current average price for diesel fuel is $5.004 so the decline would be down to about $4.76 per gallon.
- State Excise Tax: The Oklahoma state excise tax is 19 cents per gallon for gasoline and 19 cents per gallon for diesel.
- Total Tax: Combined federal and state taxes, along with other fees, put Oklahoma among the lowest in the nation for gas taxes.
While the idea of lowering fuel prices sounds like welcome relief, it would need to be approved by Congress. Some members of congress jumped on the President’s comments and agreed to sponsor the move.
One member was Reublican Sen. Josh Hawley who said Monday that he would introduce legislation to suspend the federal gas tax. GOP Rep. Anna Paulina Luna of Florida also said she plans to introduce a bill in the House this week to suspend the federal gas tax “in light of Trump’s recent remarks.” Several Democratic lawmakers had already introduced legislation to either pause or lower it.
Revenue raised by the federal gas tax goes toward the Highway Trust Fund to construct and repair roadways, and it also pays for other transit projects. If the tax were suspended, it would be at a cost of about a half billion dollars a week to the federal government.