Federal Gas Tax Suspension Considered: Here's How Much IL Drivers Would Save

Drivers in Illinois are still paying elevated prices at the pump as national debate grows over whether federal and state gas taxes should be temporarily suspended.

The pressure on drivers comes as the war in Iran has disrupted oil markets and pushed gasoline prices higher for much of the spring and early summer. President Donald Trump said this week he intends to temporarily suspend the 18.4-cent per gallon federal gas tax.

"Donald Trump has added about $1.50 a gallon to every gallon of gas that you fill your tank with — $1.50," Gov. JB Pritzker said last month as reported by Capitol City Now. "It's a war of choice that's led to that. He took us in to that war. He should get us out of that war."

In the United States, taxes and fees contribute an average of 51 cents to the price of every gallon of regular gasoline. While the federal government collects an 18.4-cent tax, the remaining portion is composed of various state-level taxes.

Gas Taxes In Illinois

An NBC News analysis looked at how the cost of a gallon of regular gasoline has changed since the war began and how the cost at the pump would change with the suspension of taxes. Here’s how it breaks down in Illinois:

Price per gallon before the war: $3.03 per gallon
Price per gallon on Thursday: $4.20 per gallon
Price per gallon without federal taxes: $4.02
Price per gallon without federal or state taxes: $3.36

What Is Illinois Doing?

Some states have moved on their own to provide relief at the pump. Georgia, for example, temporarily removed its taxes of 33.3 cents per gallon on gasoline and 37.3 cents per gallon of diesel. Indiana, Kentucky and Utah also made changes.

Illinois has paused a scheduled gas tax increase amid elevated fuel prices tied to the Iran conflict, but it has not fully suspended the state gas tax. The six-month pause blocks a 1.3-cent-per-gallon inflation adjustment that had been set to take effect July 1.

"No state can stop costly tariff schemes, reopen the global supply chain, or bring down the price of oil, but we can take charge of what we can control to provide people with some relief right now," Illinois House Speaker Emanuel "Chris" Welch said.

RELATED: IL Lawmakers Drop Ball On Bears Stadium, Pass $55B Budget

Illinois lawmakers passed a record $55.9 billion state budget earlier this month. The FY27 spending plan surpassed last year's roughly $55.1 billion budget, which had been the largest in Illinois history.

"Every element of the budget for the upcoming fiscal year was thoroughly deliberated with the aim of achieving widespread affordability for all Illinoisans," Pritzker said after his latest budget passed. "I look forward to signing the FY27 budget and delivering for Illinois’ working families in all stages of life."

The budget includes a six-month pause on the annual July 1 motor fuel tax increase, an August back-to-school sales tax holiday, nearly $100 million for food assistance and grocery access, housing affordability funding, K-12 education funding and medical debt relief.

What Happens Next?

A federal gas tax holiday would require congressional approval. Democrats in the House and Senate in March proposed measures for a temporary gas tax holiday.

Supporters of a temporary tax holiday say it could help commuters, families and small businesses immediately, especially in places where driving is a necessity. Critics say gas-tax suspensions can drain transportation funding, may not be fully passed along to consumers, and do not address the underlying oil-market disruption.