US President Donald Trump said he will move to suspend the federal tax on gasoline to help Americans shoulder surging fuel prices caused by the Iran war.

The president cannot suspend the federal tax on his own. Congress would have to approve the move.

Lawmakers from both parties have pushed for a gas-tax suspension, saying it would provide much-needed relief for families and businesses that rely on their cars and trucks to get to work and school and run everyday errands.

As of Monday, the average national gas price was US$4.52 a gallon, according to the AAA motor club, 50 percent higher than the average price of just under US$3 a gallon before Trump began the war against Iran.

The federal tax is currently set at 18.4 US cents per gallon on gasoline and 24.4 US cents per gallon on diesel, an amount that does not include state taxes, which often are higher. The tax provides more than US$23 billion per year in revenue for federal highway and public transit programmes.

Asked how long the tax should be suspended, Trump said, “Until it’s appropriate.” While the tax is only a small percentage of the price of gas, “it’s still money”, he said.

Republican Senator Rand Paul said that "instead of suspending the tax, we should suspend the war”.

A bill sponsored by Paul's Democratic counterparts Richard Blumenthal and Mark Kelly would suspend the federal tax through October 1. A similar measure was sponsored in the House by Democrat Chris Pappas.

"Trump’s war of choice with Iran is driving up gas prices across the country — and Americans shouldn’t have to bear the additional economic burden of Trump’s reckless decision making,” Blumenthal said in introducing the bill.

Kelly told reporters Monday he still prefers his legislation but would take “whatever we can get at this point”.

“People need relief,” he said. (AP)


Edited by Thomas McAlinden