How much would a federal gas tax suspension actually save the average driver, and over what timeframe?

According to the Penn Wharton Budget Model cited in the article, a federal gas tax suspension from June 1 through October 1 would save a household filling a 15-gallon tank once a week about $35 over those four months. This estimate reflects that only roughly 72% of the 18.4-cent-per-gallon tax cut — about 13.2 cents — is expected to reach consumers, due to delays and incomplete pass-through at the wholesale level.

Why wouldn’t drivers see an immediate 18.4-cent-per-gallon drop at the pump if the federal gas tax were suspended?

The federal gas tax is collected at the wholesale level, not at the pump, so its suspension wouldn’t instantly lower retail prices. As Carl Davis of the Institute on Taxation and Economic Policy explains, the tax cut would need to trickle down through suppliers and retailers — a process that is neither guaranteed nor immediate, and may result in only partial or delayed relief for consumers.

What a US gas tax suspension could mean for drivers and the prices they see at the pump

May 13, 2026

President Trump proposes suspending the federal gas tax to alleviate high fuel costs driven by the ongoing war with Iran and soaring crude oil prices above $100 per barrel. Experts warn the measure may offer limited relief while risking billions in highway funding revenue.

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