The US Government Could End The Federal Gas Tax

"The tax provides more than $23 billion per year in revenue for federal highway and public transit programs. The federal gas tax has been in place, in one way or another, since 1919 and was last raised in 1993."

"The average state gas tax is about $0.50 per gallon, with California having the highest at $0.709, while some Gulf States charge under $0.25."

"Congress and the President would need to decide to forgo some highway repairs in the name of keeping inflation low, as gas prices have recently surged to over $4 per gallon."

"The annual cost of gas per household was about $2,400 in 2024, but it has likely increased to around $4,000 and could reach $5,000 if tankers are blocked from the Strait of Hormuz."

The federal government has the option to reduce gas prices by eliminating the current gas tax of $0.184 per gallon. This tax generates over $23 billion annually for federal highway and public transit programs. While the tax has been in place since 1919, states also impose their own taxes, averaging around $0.50 per gallon. The decision to eliminate the federal tax would require Congress and the President to consider the implications for highway repairs. Current gas prices have surged to over $4 per gallon, significantly impacting household expenses.

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