The president’s warning came amid falling crude oil prices and after he accused gas stations of price gouging.
President Donald Trump on June 30 demanded that gasoline retailers immediately lower prices at the pump, warning of “big problems” if they fail to pass along the benefits of falling crude oil prices to consumers.
In an early-morning post on Truth Social, Trump said gasoline prices remain too high while U.S. crude oil is trading at about $68 per barrel and the price is continuing to decline.
“Gasoline Retailers must get their Prices down, IMMEDIATELY!” Trump wrote.
He urged retailers to “start targeting around the $2.50 a Gallon number,” while accusing some stations of price gouging.
Trump said that if gas stations don’t lower prices at the pump, “big problems lie ahead.”
He also singled out California, saying the state should reduce gasoline taxes that he argued are inflating prices for drivers.
“Soon the Tax will be higher than the Product itself,” he wrote, adding that Californians were being “abused” by their state government.
Trump’s warning comes less than a week after he said he had directed the Department of Justice to investigate whether gasoline retailers and oil companies were failing to lower pump prices in line with the sharp decline in crude oil prices following the U.S.–Iran ceasefire agreement.
At the time, Trump accused companies of “gouging” consumers and said retail gasoline prices were not falling quickly enough, even though crude prices were dropping “like a rock.”
Gas Prices Continue to Ease
National gasoline prices have been trending lower in recent weeks as global oil markets stabilized following the easing of tensions in the Middle East.
According to the American Automobile Association (AAA), the national average price for regular gasoline stood at $3.91 per gallon on June 29, the fifth consecutive weekly decline.
The average was down from nearly $4 a week earlier and was more than 50 cents lower than one month ago, when drivers were paying about $4.51 per gallon.
AAA said declining crude oil prices and improving fuel supplies have helped push prices lower, although demand is expected to rise as a record number of Americans prepare to travel over the Independence Day holiday weekend.
The U.S.–Iran conflict disrupted crude supplies in the Persian Gulf, driving prices to multi-year highs.
However, since the United States and Iran signed a memorandum of understanding on June 17, agreeing to extend a ceasefire to give room for negotiations on a lasting peace deal and reopen the Strait of Hormuz to shipping, oil benchmarks have fallen sharply from peaks of more than $126 per barrel for Brent and nearly $120 for West Texas Intermediate.
By Tom Ozimek
