New England Set for Major Natural Gas Pipeline Expansion Amid Rising Fuel Costs

President Donald Trump has proposed suspending the federal gasoline tax to ease rising fuel costs, a move that could reduce prices by up to $0.18 per gallon. Speaking to CBS News on Monday, Trump called the suspension a “great idea,” stating that taxes would “phase back in” once prices stabilize. Gas prices have surged 50% since the start of the Iran War 73 days ago, peaking at over $4.52 per gallon on Sunday, according to AAA data.

Suspending the federal excise tax requires congressional approval, a process that could prove challenging. The move would cost the government roughly $500 million per week in lost revenue. However, bipartisan support is growing, with Senator Josh Hawley (R-MO) introducing legislation on Monday to pause the tax temporarily.

Meanwhile, several states have already taken action to lower fuel costs. Indiana extended its suspension of the state sales tax on gasoline for another 30 days, reducing prices by an average of $0.59 per gallon. Kentucky’s temporary $0.10 reduction in gas taxes also takes effect this week.

New England’s Pipeline Push Gains Momentum

New England, despite being near the Marcellus Shale—a major U.S. natural gas-producing region—relies heavily on imported liquified natural gas (LNG) due to insufficient pipeline infrastructure. This reliance stems from policies by Democratic governors aimed at halting pipeline projects in the name of climate action, even as the region’s dependence on gas-fired electricity grows.

That may soon change. Williams Companies recently broke ground on a new gas pipeline expansion in New York. Now, Enbridge, a Calgary-based pipeline giant, plans to extend the Algonquin Gas Transmission line, according to unnamed officials cited by E&E News. While no official timeline has been announced, Democratic governors who previously opposed pipelines are now signaling openness to such infrastructure.

This shift comes as Alaska increases oil exports to Asian markets, seeking alternatives to crude transported through the still largely closed Strait of Malacca.