House panel backs gas discount for service members

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1–2 minutes

Summary

A House committee backed a proposal to let military exchanges discount gas by at least the amount of the federal fuel tax.

Why this matters

The measure could lower fuel costs for service members and their families if it becomes law. It also reflects how rising oil and gasoline prices are affecting military households and the broader public.

House lawmakers advanced a measure Thursday to lower gasoline prices at military exchanges for U.S. service members.

The proposal would authorize Defense Secretary Pete Hegseth to offer a discount at exchange stores equal to the federal gas tax, which is 18.4 cents per gallon for regular gasoline and 24.4 cents for diesel. It would also allow the secretary to reduce prices further to offset state and local taxes.

The measure still must pass the full House and be reconciled with the Senate version before becoming part of a final fiscal 2027 defense package.

In recent years, Congress has relied on stopgap funding measures, and final defense appropriations have stretched into December.

U.S. gas prices have risen since U.S.-Israeli strikes against Iran began Feb. 28. The prolonged closure of the Strait of Hormuz, a key route for global oil trade, has pushed oil prices higher.

Memorial Day weekend gas prices were the highest in four years, according to AAA. The national average for a gallon of regular gasoline was $4.56, up $1.38 from the same weekend last year. By Thursday, the average had fallen to $4.24.

“But uncertainty lingers over when the Strait of Hormuz will fully reopen and resume traffic,” AAA said in a release. “That unknown means oil prices will likely not decrease dramatically as summertime gasoline demand starts going up.”

According to the Army & Air Force Exchange Service, fuel prices are set locally by surveying nearby gas stations and matching the lowest price.

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