Trump demands fuel sellers immediately lower prices
US President Donald Trump has warned retail gasoline sellers that they face “big problems” if they do not immediately lower fuel prices. Oil surged to nearly $120 a barrel at the start of the war in Iran but has since fallen significantly, hovering around the $70 mark. According to Trump, this drop should already be reflected in what drivers are paying.
The president wants average gasoline prices to fall to $2.50 per gallon. Currently, the average price for regular gasoline in the US is $3.86. Trump aims to eradicate price speculation among retailers.
Appeal to sellers and California
Writing on Truth Social, President Trump told sellers that they should start targeting a price of around $2.50 per gallon. He then separately addressed California, urging the state to stop imposing high fuel taxes, and made a bold statement that “soon the tax will be higher than the product itself, and the United States will not tolerate this.”
Read also: After Trump caused a spike in gasoline prices, he is now furious that they are not falling fast enough
“Gasoline sellers must immediately lower their prices! They are too high, considering oil is now at $68 a barrel and continues to fall. Sellers should quickly respond to this statement and do what they know is right — LOWER YOUR PRICES FOR OUR GREAT AMERICAN PEOPLE!” — Trump added.
The leader of the free world also wrote: “There will be no price gouging, it is completely illegal.” He likely meant that price speculation is illegal, but he is evidently not one to care about proper grammar.
Trump’s fight with big oil companies
As of the beginning of this week, the average price per gallon of regular gasoline in the US was $3.86. While this is lower than the average peak of $4.39 four weeks ago, it is still above the average of $3.18 a year ago.
This is far from the first time Trump has targeted gasoline sellers across the country. Last week, he announced that he had instructed the Department of Justice to immediately begin investigating why “big oil companies are not lowering fuel prices in line with the significantly lower prices they are paying for oil,” noting that “customers are being cheated.”
Interestingly, Trump’s demands come against the backdrop of his own policies, which previously contributed to rising energy prices. Economists note that the fuel market is complex, and oil prices do not always instantly affect the cost of gasoline due to logistical delays and seasonal factors. Additionally, taxes and regulatory costs in different states, especially California, significantly impact the final price for consumers. Trump appears to be trying to shift responsibility for high prices onto retailers, although the real picture is much more complex and involves global market forces and domestic policy.