Fuel tax suspension talks emerge as pump prices remain elevated

High national diesel prices held steady this week, while gasoline prices continue to rise. The national average on-highway diesel price remained essentially flat—decreasing just 0.1 cents—at $5.639 per gallon, according to data released by the U.S. Energy Information Administration (EIA) on May 11. Gas prices rose 5 cents to $4.50 per gallon.

With operating costs straining carrier margins, a bipartisan group of federal legislators—joined by President Donald Trump—is now weighing a suspension of the federal fuel tax to provide immediate relief.

What are the current diesel prices across the U.S.?

Here are this week’s diesel price highlights from each region of the U.S.:

• West Coast: The biggest drop in diesel prices this week occurred in the Pacific states, down 7 cents to $6.562 per gallon. Without including California, diesel prices dropped 10 cents to $5.905. 
• East Coast: Diesel prices dropped 4 cents to $5.465.
• Gulf Coast: Diesel prices dropped 3 cents to $5.152.
• Rocky Mountain: Diesel prices dropped 3 cents to $5.491.
• Midwest: Diesel prices rose 7 cents to $5.815.

According to AAA Motor Club (AAA), the current national diesel price average is $5.644. This is 1 cent higher than EIA’s current estimate and $2.13 higher than this time last year.

What are the current gasoline prices across the U.S.?

The current national average on-highway gasoline price is $4.50, according to EIA, 5 cents higher than last week’s average. 

Here are this week’s gasoline price highlights from each region of the U.S.:

• East Coast: Gasoline prices this week are up 9 cents to $4.336, the largest regional increase this week.
• Gulf Coast: Gas prices rose 5 cents to $3.953.
• West Coast: Gas prices rose 3 cents to $5.613. Without including California, gas prices rose 5 cents to $5.189. 
• Rocky Mountain: Gas prices rose 1 cent to $4.372.
• Midwest: Gas prices rose 1 cent to $4.405.

According to AAA, the current national gasoline price average is $4.504. This is 0.4 cents higher than EIA’s current estimate and $1.37 higher than this time last year. 

In a recent press release, AAA stated: “Pump prices are now $1.40 higher than they were a year ago and have reached their highest level since 2022, when the national average peaked at $5.01 per gallon. While crude oil prices dipped below $100 per barrel amid ongoing negotiations to reopen the Strait of Hormuz, gasoline prices continue to face upward pressure from global supply concerns.” 

Potential gas tax suspension could ease fuel costs

With the fuel price crisis seemingly not going away any time soon, officials are finally discussing solutions. On May 11, President Trump discussed suspending the federal gas tax, according to AP News. Pushing this suspension through would require Congressional approval, and no formal move has been made yet, as of May 12. 

The federal fuel tax on diesel is 24.4 cents per gallon, while the tax on gasoline is 18.4 cents per gallon. 

Some Republican and Democratic officials have supported this move, including Senator Josh Hawley (R-Missouri) and Representative Anna Paulina Luna (R-Florida. Senators Mark Kelly (D-Arizona) and Richard Blumenthal (D-Connecticut) are sponsoring a bill that would suspend the gas tax until October 1. 

Other leaders are focused on different solutions to the fuel price crisis. Senator John Thune (R-South Dakota) supported the reopening of the Strait of Hormuz; Senator Rand Paul (R-Kentucky) supported the suspension of the war with Iran.