US gasoline prices have climbed by more than 50% since the war began, creating significant economic pressure on American consumers. According to reports from Reuters, Americans have spent an additional ₹39.6 billion on fuel since the conflict began, with an Ipsos Consumer Tracker finding that 56% of Americans report higher gas spending over the past three months. This represents a dramatic increase from 24% in April 2025, highlighting the escalating financial burden on households across the country. The sharp climb in fuel costs is attributed to the closure of the Strait of Hormuz, which has disrupted global oil supply chains and pushed prices to record levels. Historically, $4-per-gallon gasoline has been a level that triggers public backlash and economic anxiety, and that threshold has been exceeded as consumer sentiment recently dipped to a record low. U.S. consumer inflation surged to 3.8% in April, highest in nearly three years, while companies ranging from airlines to McDonald's are seeing the effects of higher energy costs.
Several states are now implementing gas tax suspensions to provide relief at the pump, with Georgia, Indiana and Utah pausing or reducing their state gasoline taxes as prices remain elevated. According to recent reports, more than six in 10 Americans say their household's finances have taken a hit from higher gas prices, with a May Reuters/Ipsos poll putting Trump's economic approval rating at just 30%, down several points since the beginning of the war. President Trump has backed suspending the federal gasoline tax this week, a step that would knock 18.4 cents a gallon off motor fuel prices currently averaging more than $4.50 a gallon nationwide. As reported by Reuters, citing people familiar with the White House's discussions, suspending the federal gas tax is "gaining urgency" after it was initially dismissed by some aides as unnecessary. "Within the White House, a consensus has emerged that with prices up 50% since the start of the war, Trump needs 'a visible consumer relief move now,'" one person familiar with the discussions told Reuters.
Wisconsin faces significant constraints in implementing gas tax relief measures, as state law doesn't allow the governor to singlehandedly suspend the gas tax and create a "holiday" – a period of time when consumers wouldn't have to pay it. Instead, any tax suspension must be introduced as legislation in the state Capitol, and Gov. Tony Evers would have to sign it. No lawmakers have introduced a bill to do that, and it looks unlikely to happen in 2026. Evers, asked May 11 if he was considering a gas tax holiday, declined the idea, saying "where we are now is a good place." A $1.8 billion tax relief and school funding deal failed to pass in a special session this week, and a gas tax holiday wasn't included in that plan. Wisconsin's motor vehicle fuel tax is 30.9 cents per gallon, making it the 20th-highest in the nation according to a 2025 Tax Foundation analysis. The fuel tax generated more than $1 billion in 2023-24, representing nearly 37% of the transportation fund's revenue.
Despite Trump's support, implementing a gas tax suspension faces significant practical challenges and limited financial impact. As reported by PolitiFact, a one-month suspension of the gasoline and diesel taxes would deprive the government of $3.5 billion in revenue, while a six-month suspension would total about $21 billion and a three-year suspension would total $124 billion. The federal gasoline tax generates an estimated $30 billion annually through 2036, with diesel tax revenue projected at about $11 billion yearly. Patrick De Haan, head of petroleum analysis for GasBuddy, estimates it would take 13 months of a suspended federal gasoline tax for consumers to recoup the Iran War price increases that have accumulated to date. Critics warn that reducing gasoline prices could increase driving demand during supply constraints, potentially limiting consumer savings. Even with a federal tax suspension, gas prices would still average about $4.32 per gallon, representing only $1.84 saved per 10-gallon fill-up according to energy analysts.
