As gas prices remain stubbornly high across America, President Donald Trump suggested a federal gas tax holiday might help. But experts say this move is unlikely to have much effect on pump prices as the summer travel season approaches.
The Strait of Hormuz, a key oil supply route, remains effectively closed since early March due to US and Israel strikes against Iran. This has contributed to rising fuel costs, with gasoline averaging $4.53 per gallon in the US, up from $3.18 last year.
Even if the tax were suspended for summer, drivers might not see much benefit as prices are influenced by various factors including refining costs and station operations. The price of oil has fluctuated wildly, with Brent crude hitting an all-time high on April 7th before settling around $105 per barrel.
Moreover, inflation driven by high fuel prices and shortages in commodity inputs like fertilizer is making life more expensive for Americans. An 18-cent savings from the gas tax pales in comparison to broader economic pressures.
