The war in Iran has crude oil prices flirting with $100 a barrel, as tankers are attacked in the Strait of Hormuz and states are considering cutting their fuel taxes, important sources of revenue for many of them.
"My legislation would temporarily suspend the state gasoline tax for 60 days to provide immediate relief at the pump for commuters and working families across the Commonwealth," said Pennsylvania Democratic state Sen. Lisa Boscola.
"The bill will also authorize the utilization of bonds to cover the temporary reduction in Motor License Fund revenues, ensuring no funding is lost for our obligations to the Pennsylvania State Police or ongoing infrastructure projects."
According to the Tax Foundation, Pennsylvania has the fourth highest fuel tax rate of 58.7 cents per gallon. California leads the pack with 70.9 cents per gallon.
Indiana Republican Governor Mike Braun is also being quizzed about the possibility of a tax holiday.
"If the thing gets belabored beyond what most think will be two to three weeks, everybody will have to use the tools in their own tool chest to make sure you mitigate it," he said.
"I'm not saying specifically what it would be, don't know what the administration will do but that's the general framework of thinking."
Indiana comes in at number five on the state fuel tax list with 54.5 cents per gallon.
Most states collect fuel tax revenue via excise taxes charged per gallon. Some states also attach fees to wholesalers and retailers that are passed through to the consumer.
Hawaii and Nevada permit cities and counties to attach their own fees.
According to the U.S. Department of Energy, higher prices at the pump typically leads to a decrease in discretionary travel. The pattern altered during the pandemic when prices and miles traveled both dropped.
The Trump administration has put a strong emphasis on using falling gas prices as a sign of economic strength.
The price of oil now becomes a function of who controls the Strait of Hormuz, a natural choke point between Iran and the United Arab Emirates.
During a news conference on Tuesday, hosted by Punchbowl News in Washington D.C., Sean Duffy, Secretary of the U.S. Department of Transportation expressed his view that the war would be "short lived."
He predicted a "recovery in the energy markets," and possible solutions to navigating the Strait.
"At one point we are going to figure out, do we engage with escorts, with our, or other militaries," he said.
"What do we do on risk insurance? We have a product at MARAD, which is our maritime mode at DOT, a long-standing war risk insurance program, but there's others who are looking at it as well," said Duffy.
The One Big Beautiful Bill Act ended a $7,500 federal tax credit for buying an electric vehicle in September 2025, seven years before it was supposed expire.
The House Transportation and Infrastructure Committee has signaled a move towards a national policy on fees charged to EV's as a way to prop up an insolvent Highway Trust Fund.
