President Donald Trump says gas prices are too high – and he warned retailers they should be charging no more than around $2.50 per gallon.
“Gasoline Retailers must get their Prices down, IMMEDIATELY! They’re too high considering that Oil is now at $68 a Barrel, and heading south,” Trump said in a Truth Social post.
“The Retailers must quickly react to this statement, and do what they know is right — DROP YOUR PRICE FOR OUR GREAT AMERICAN PEOPLE!,” Trump continued. “There will be no gauging, which is totally illegal. If Retailers don’t do this, big problems lie ahead! Start targeting around the $2.50 a Gallon number, and California should stop charging such heavy Taxes on their Gasoline.”
The comments come as the national average price for a gallon of gas on Tuesday, June 30 was $3.84, according to AAA.
Why Is Trump Feeling Political Pressure on Gas Prices?
Gas prices have been elevated since Trump first launched military strikes against Iran in late February, and voters have complained about the increase to pollsters.
A poll conducted by ABC News, The Washington Post, and Ipsos in April found that 44% of respondents had cut back on driving due to high gas prices.
The Trump administration and Republican leaders in Congress have been scrambling since the start of the Iran War to contain the political fallout of the gas price jump.
Trump has endorsed a proposal to temporarily suspend the 18-cent per gallon federal gas tax and he is pushing for a bill that would allow year-round sales of higher ethanol gas that is historically cheaper at the pump.
Is There Any Evidence of Price Gouging in Gas Prices?
Analysts have questioned whether gas prices have remained elevated due to gouging.
“Ukrainian attacks on Russian refiners are increasingly accurate, knocking down refining capacity and cutting exports and making Russia import, putting global pressure on refined products,” Patrick De Haan, head of petroleum analysis at GasBuddy, wrote in an X post. “Plus a massive heat wave in the US, but the Prez has a decent point on retail prices. ‘Gauging’ maybe less so.”
Bethany Williams, a spokesperson for the Washington, DC-based American Petroleum Institute, which lobbies for natural gas and oil producers and retailers, said the relationship between crude oil and pump prices isn’t as clear cut as Trump implied in his Truth Social post.
“Our industry shares the goal of delivering relief at the pump and restoring stability to global energy markets,” Williams said. “Gasoline prices don’t move in lockstep with crude oil, especially during a major global disruption that is still affecting supply, refining and inventories. Our focus remains on supporting market stability and delivering the energy consumers need.”
How Are Gas Prices Determined?
The API said in a post on its website “gasoline prices reflect costs across the fuel supply chain − from crude oil production to refining, distribution and retail sales.”
“The largest factor is the price of crude oil, which is traded in global markets,” the group said. “Refining costs, distribution and marketing expenses, and federal and state taxes also contribute to the price drivers ultimately pay at the pump.”
According to the U.S. Energy Information Administration, the price you see at the pump is composed of the following factors:
Crude oil pricing: 57%
Refining costs: 21%
Federal and state taxes: 14%
Distribution and marketing: 8%
For diesel pricing, the agency breaks down the composition of the posted pricing like this:
Crude oil pricing: 42%
Refining costs: 34%
Distribution and marketing: 12%
Federal and state taxes: 12%
Reporting by Keith Laing, USA TODAY / USA TODAY. USA TODAY Network via Reuters Connect.
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