President Donald Trump says he wants to suspend the federal gas tax to help Americans save at the pump as prices remain high amid the ongoing conflict involving Iran.Meanwhile, Kentuckians are getting some relief as the state gas tax is being paused for the next 30 days starting Monday.Economists say rising summer demand and global oil supply concerns are pushing prices higher.“We’re entering the summer months, that’s when demand is highest. But we’re also having oil constraints because of what’s going on in the Strait of Hormuz,” said Janet Harrah, economist at Northern Kentucky University’s Haile College of Business.Gas prices have climbed sharply since the start of the conflict, prompting Trump to call for a temporary suspension of the federal gas tax. However, any pause would require approval from Congress.“All spending decisions have to go through Congress. So now they can make that happen quickly, if they decide they want to do that,” Harrah said.The federal gas tax currently sits at 18 cents per gallon. For many drivers, that could translate into several dollars in savings each time they fill up.But economists warn the move could create longer-term challenges.“It’s good in the short term for drivers, but in the long term, that means we have fewer dollars to maintain our infrastructure,” Harrah said. “We either have to have less infrastructure maintenance or we have to postpone it, or we have to find funding somewhere else.”In Kentucky, Gov. Andy Beshear has paused the state gas tax beginning Monday and also activated price gouging protections. State officials say businesses violating the order could face prosecution.“It’s about 18 cents a gallon. If you’ve got a 20-gallon tank, it’s going to save you three or four bucks every time you fill up,” Harrah said.Harrah says gas prices often fluctuate with global market conditions, but she believes leaders should focus on long-term energy stability.“I think the biggest thing we need to think about is what can we do to bring down energy prices globally,” Harrah said. “The best thing we could probably do in the short term is to try to bring certainty back to the markets and make sure that we can get ships through the Strait of Hormuz.”
President Donald Trump says he wants to suspend the federal gas tax to help Americans save at the pump as prices remain high amid the ongoing conflict involving Iran.
Meanwhile, Kentuckians are getting some relief as the state gas tax is being paused for the next 30 days starting Monday.
Economists say rising summer demand and global oil supply concerns are pushing prices higher.
“We’re entering the summer months, that’s when demand is highest. But we’re also having oil constraints because of what’s going on in the Strait of Hormuz,” said Janet Harrah, economist at Northern Kentucky University’s Haile College of Business.
Gas prices have climbed sharply since the start of the conflict, prompting Trump to call for a temporary suspension of the federal gas tax. However, any pause would require approval from Congress.
“All spending decisions have to go through Congress. So now they can make that happen quickly, if they decide they want to do that,” Harrah said.
The federal gas tax currently sits at 18 cents per gallon. For many drivers, that could translate into several dollars in savings each time they fill up.
But economists warn the move could create longer-term challenges.
“It’s good in the short term for drivers, but in the long term, that means we have fewer dollars to maintain our infrastructure,” Harrah said. “We either have to have less infrastructure maintenance or we have to postpone it, or we have to find funding somewhere else.”
In Kentucky, Gov. Andy Beshear has paused the state gas tax beginning Monday and also activated price gouging protections. State officials say businesses violating the order could face prosecution.
“It’s about 18 cents a gallon. If you’ve got a 20-gallon tank, it’s going to save you three or four bucks every time you fill up,” Harrah said.
Harrah says gas prices often fluctuate with global market conditions, but she believes leaders should focus on long-term energy stability.
“I think the biggest thing we need to think about is what can we do to bring down energy prices globally,” Harrah said. “The best thing we could probably do in the short term is to try to bring certainty back to the markets and make sure that we can get ships through the Strait of Hormuz.”