The Trump administration is negotiating with Congress to suspend federal gasoline and diesel taxes as Middle East tensions drive fuel prices higher. Officials are crafting legislation that would prevent supply disruptions while providing consumer relief, with concerns that an abrupt end could trigger panic buying at pumps.

Current unleaded gasoline averages $4.53 per gallon nationwide, up 52% since conflict escalation, while diesel reaches $5.65 per gallon. The proposed suspension targets the 18.4-cent-per-gallon gasoline tax and 24.4-cent-per-diesel levy, though critics argue savings may be minimal given soaring baseline costs.

Senator Josh Hawley's plan limits relief to 90 days with presidential extension authority, while Representative Jeff Van Drew proposes 18 months with gradual phase-in. Democrats counter with legislation linking tax suspension to $4 per gallon price thresholds. Transportation officials warn that removing the tax could reduce highway funding and potentially increase demand during supply constraints.

Interior Secretary Doug Burgum argues the aggregate savings across millions of daily gallons will meaningfully benefit consumers, though economists question whether oil companies will pass through the full tax reduction to retail prices.