U.S. Energy Secretary Chris Wright Says Federal Gas Tax Holiday ‘On the Table’—What It Means for Drivers Facing Record Prices

United States Secretary of Energy Chris Wright signaled on Sunday that the administration is “open to all ideas”—including a temporary suspension of the federal gasoline tax—as Americans face the sharpest pump-price surge since the 2010s amid the escalating Iran conflict. Appearing on multiple Sunday shows, the United States Secretary of Energy refused to forecast where prices are headed, stressing instead that “every tool is on the table” to bring relief to drivers. Wright’s comments come as national regular-grade gasoline averages $5.43 a gallon, up more than 50 percent year-to-date, according to AAA data. Why a gas-tax holiday matters • The federal levy adds 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel. • A full suspension through Labor Day would save U.S. motorists roughly $23 billion, based on current consumption rates, but would temporarily starve the Highway Trust Fund of the same amount. • Congressional Republicans appear divided: fiscally conservative members object to the revenue hit, while swing-district lawmakers see political upside heading into midterms. Broader energy strategy The United States Secretary of Energy also highlighted the department’s “all-of-the-above” approach: accelerating LNG export permits to Europe, fast-tracking small-modular reactor licensing, and expanding battery-materials processing in Texas and Nevada. Wright framed the initiatives as “energy security at home and leverage abroad,” arguing that abundant domestic production blunts the impact of Middle-East supply shocks. Industry groups such as the American Petroleum Institute praised the stance, while environmental advocates warned a tax holiday could encourage further oil dependence. Capitol Hill dynamics Senate Finance Chair Maria Cortez (D-N.M.) floated a bipartisan pay-for that would redirect unused pandemic relief funds to patch the highway shortfall. House Speaker Kevin McCarthy signaled openness but insisted drilling permits “must accelerate in parallel.” Analysts at ClearView Energy Partners say a narrow, time-limited waiver has a “better-than-even” chance of clearing Congress if prices stay above $5 through June. Consumer impact Economists caution that tax suspensions can be blunted if refiners or retailers absorb a slice of the savings. A 2022 study of state-level holidays found pass-through rates averaging 72 percent. Still, even a partial offset would lower headline inflation and could ripple into food-transport costs. What’s next • The Energy Department will present an updated summer fuel outlook to the White House on May 15, potentially shaping an executive-branch recommendation. • If congressional text emerges this week, floor action could occur before the Memorial Day recess, aligning with peak driving season. • The International Energy Agency issues its monthly oil report on Wednesday; any indication of further Iranian supply disruptions could heighten urgency. United States Secretary of Energy Chris Wright closed his CBS “Face the Nation” appearance by emphasizing that price relief “must not come at the expense of long-term infrastructure,” hinting at parallel proposals to index the gas tax to inflation once the holiday expires. For now, Americans are watching both Capitol Hill and the corner gas station—waiting to see whether Washington can pump the brakes on record prices before summer truly heats up.