Nature of risk
Although the measure lowers fuel costs in the short term, it reduces incentives for fuel conservation and low-carbon transportation choices. By making fossil fuels cheaper, the policy may increase fuel consumption and emissions while delaying investment in cleaner alternatives.
Policy summary
What changed
In April 2026, the federal government temporarily suspended the federal fuel excise tax on gasoline, diesel, and aviation fuels to provide relief from rising fuel prices caused by global energy market disruptions. The suspension reduced fuel taxes to zero until September 2026.
Primary source