WEST PALM BEACH, Fla. — President Donald Trump on Monday called for the suspension of the federal tax on fuel in an effort to curb rising costs at the pump, which have surged following military strikes on Iran.
Oil prices climbed again on Monday after Trump rejected Iran's response to a U.S. peace proposal. The gas tax suspension would require approval from Congress.
WATCH BELOW - Gas tax suspension: What Trump's proposal could mean for drivers
Drivers in West Palm Beach on Monday told WPTV they are looking for any relief they can find.
"Anything goes a long way," one driver told WPTV reporter Matt Sczesny.
Trump acknowledged the savings would be modest but meaningful.
"It's a small percentage, but it's still money," Trump said.
The federal sales tax on gasoline stands at 18 cents per gallon. The push to suspend it comes as gas prices have jumped well over $4 a gallon and in some areas are approaching $5.
Florida State Sen. Lori Berman, D-Boynton Beach, said her fellow Democrats are also calling for a halt to the state's 22-cent sales tax on gas during ongoing budget negotiations.
"We suggested there be a pause on the gas sales tax," Berman said.
Berman said eliminating both taxes simultaneously would compound the benefit for consumers.
"It would only be compounding. Once we get rid of it at the federal sales tax and the state sales tax, this will be an even greater benefit for Floridians," Berman said.
While suspending any sales tax is likely to affect prices at the pump, one station owner said it could take some time before tax-free gas actually reaches consumers.
Analysts say the situation in Iran remains the biggest driver of fuel prices, and any tax relief could be offset by continued oil price increases.
"If Gov. (Ron) DeSantis issued a gas tax holiday that may be offset if the price of oil is going up, you may not visibly see it," Patrick De Haan of GasBuddy said.
Suspending the federal sales tax on gas will not happen overnight and will require an act of Congress.
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