Former President Donald Trump has called on gas retailers to lower prices to $2.50 per gallon, warning of potential consequences if they do not comply. His remarks come as gas prices have begun to decline nationwide.
Immediate Action & Core Facts
Trump posted on Truth Social on Monday, urging gas retailers to reduce prices immediately, citing what he called illegal price gouging. He specifically targeted California, where gas taxes are set to increase. Meanwhile, the national average gas price stood at $3.86 per gallon as of Monday, according to AAA.
Deeper Dive & Context
Trump’s Demands and Warnings
Trump’s post followed earlier criticism of oil companies for not lowering prices despite easing tensions in the Middle East. He had previously instructed the Justice Department to investigate potential price gouging. Chevron’s finance chief, Eimear Bonner, told CNBC that while energy providers are working to lower prices, it would take time for reductions to reach consumers.
Gas Price Trends
Gas prices have fluctuated significantly in recent months, spiking above $4 per gallon during the U.S.-Iran conflict before beginning to decline. As of June 29, the national average was $3.86, down from $4.39 a month earlier. Analysts noted that prices have dropped in 46 states over the past week, with the West Coast seeing some of the largest declines.
Middle East Tensions and Oil Prices
The price of West Texas Intermediate (WTI) crude oil has also fallen, dropping to around $69 per barrel. This is lower than prices before the U.S.-Iran conflict began. However, Brent crude saw a slight increase to $73 per barrel. The easing of tensions in the Middle East has contributed to the decline in oil prices, which is expected to further reduce gas prices in the coming weeks.
Regional Variations
California and Hawaii currently have the highest gas prices in the country, at $5.45 and $5.49 per gallon, respectively. California’s gas tax is set to increase from 61.4 cents to 63.4 cents per gallon on July 1, which Trump criticized in his post.
Industry Response
Chevron’s Bonner emphasized that while oil prices and gas prices are correlated, there is a lag between the two. She expects prices to continue declining as tensions ease and the market stabilizes. GasBuddy analyst Patrick De Haan noted that the national average is at its lowest level since mid-March, despite recent geopolitical turbulence.