Topline
President Donald Trump once again appeared to express his displeasure with gas prices at the pump, arguing that they were not dropping fast enough, even as global crude prices continue to decline amid market optimism about the full reopening of the Strait of Hormuz and progress in U.S.-Iran negotiations.
The president demanded that gas retailers must drop their prices to match declines in crude oil futures.
AFP via Getty Images
Key Facts
In a post on Monday evening, the president demanded that gasoline retailers lower their prices “IMMEDIATELY!”, less than a week after threatening a federal price-gouging probe against them.
The president argued that prices at the pump are still “too high” despite a drop in crude oil futures to pre-Iran War levels.
With citing any particular evidence, Trump appeared to suggest the elevated gas prices amounted to price gouging, which he said is “totally illegal,” and warned retailers of “big problems.”
In his post, the president said retailers should target an average gas price of around $2.50 per gallon, which would be lower than the roughly $2.93 per gallon price before the war began.
What Do We Know About Current Gasoline Prices?
According to AAA’s tracker, the national average gas price on Tuesday was $3.85 per gallon, slightly above Tuesday’s average but down from $4.02 last week. Two weeks ago, the average fell below $4 per gallon for the first time since the end of March. The war had caused pump prices to peak above $4.50 per gallon last month, driving up inflation. The prices have continued to decline since both sides signed an interim peace deal that agreed to reopen the blockaded Strait of Hormuz, which is used to transport around 20% of the world’s oil. However, the peace deal remains tenous with both sides exchanging fire in the last few days—disrupting shipping.
Tangent
Trump’s post also called out the government of California, saying it should “stop charging such heavy Taxes on their Gasoline.” The president claimed: “Soon the Tax will be higher than the Product itself, and the United States will not stand for it, nor will the People of California.” According to California’s Energy Commission, the state’s various taxes and environmental levies account for roughly 20% of the total price for a gallon of gas. According to AAA’s tracker, California’s average gas price on Tuesday stood at $5.43 per gallon—the third highest among all states, putting it behind only Alaska and Hawaii.
chief critic
In a post on X, California Gov. Gavin Newsom’s press office shared a screenshot of Trump’s post and wrote: “REMINDER of what Trump said on March 12: ‘When oil prices go up, we make a lot of money.’” In a follow-up post, Newsom’s press office wrote: “The GOP-enabled Iran war has now forced a growing $63 billion in extra fuel costs on Americans nationwide — that $243.14 per California household so far this year.”