(The Epoch Times)—President Donald Trump on Tuesday 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 despite U.S. crude oil trading at about $68 a barrel and continuing to decline.
“Gasoline Retailers must get their Prices down, IMMEDIATELY!” Trump wrote. “They’re too high considering that Oil is now at $68 a Barrel, and heading south.”
He urged retailers to “start targeting around the $2.50 a Gallon number,” while accusing some stations of price gouging.
Price gouging “is totally illegal,” Trump wrote, adding that if gas stations don’t lower prices at the pump, “big problems lie ahead!”
Trump 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 despite crude prices 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, marking the fifth consecutive weekly decline and the second straight week below $4 per gallon.
The average was down from nearly $4 a week earlier and 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 above $126 per barrel for Brent and nearly $120 for West Texas Intermediate (WTI).
After five straight monthly increases, analysts have cut their 2026 oil price forecasts for the first time since the Iran war began, following the U.S.–Iran deal reopening the Strait of Hormuz and easing concerns over prolonged supply disruptions.
A monthly Reuters survey of 31 economists and analysts forecast Brent crude would average $84.50 per barrel in 2026, versus $90.44 projected last month. WTI was seen averaging $79.49 per barrel, down from May’s projection of $84.63.
However, some analysts said that lingering geopolitical risks mean that the potential remains for crude prices to rebound.
“We believe that the market is being too optimistic over the speed of the supply recovery as well as its sustainability,” Warren Patterson, ING’s head of Commodities Strategy, wrote in a Monday note.
“Furthermore, we have seen a significant tightening in global oil inventories since the start of the conflict, which leaves the market more vulnerable relative to the pre-war environment.”
Some energy experts have said that gasoline prices typically do not fall as quickly as crude oil prices due to factors such as delays in refining, transportation, and distribution.
Chevron chief financial officer Eimear Bonner said last week that lower crude prices should eventually translate into cheaper gasoline for consumers but noted that the process takes time.
“There is a lag between … reductions in oil prices and when that shows up at the pump,“ she told CNBC on June 25. ”But we expect that prices will come down as things continue to normalize.”
Jack Phillips contributed to this report.
