"Gasoline retailers must reduce prices immediately," President Trump wrote on Truth Social on 29/6. The urgent call came with a warning that businesses failing to comply "will face big trouble."
Last week, Trump stated he had instructed the Justice Department to investigate oil companies for not lowering retail gasoline prices in line with the decline in crude oil costs. He simultaneously accused these businesses of "gouging" consumers. "There will be no excessive price increases; this is completely illegal," he declared.
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Average gasoline prices in the US over the past 18 months (USD/gallon). Source: GasBuddy |
Due to the Middle East conflict, gasoline prices in the US surged over the past four months, reaching a new record of 4,37 USD per gallon (equivalent to 1,15 USD per liter) in mid-May, according to the American Automobile Association (AAA) gasoline price tracking service.
Rising gasoline prices raised consumer concerns. This occurred as Trump and the Republican party worked to protect their narrow majority in Congress ahead of the midterm elections in November.
In recent weeks, a ceasefire between the US and Iran largely held, helping the gasoline market cool down. The GasBuddy tracking website reported on 30/6 that the average gasoline price had dropped to 3,83 USD per gallon (1,01 USD per liter).
This development contributed to a slight improvement in US consumer confidence in June, marking the first improvement since the Iran conflict began. President Trump still desires further price reductions. "Let's aim for a price of about 2,5 USD per gallon," he wrote.
However, in a comment last week, Bethany Williams, a spokesperson for the American Petroleum Institute (API) – a trade group representing producers like Exxon and Chevron – stated that gasoline prices cannot immediately drop with oil prices.
"Gasoline prices do not move in parallel with crude oil prices, especially amidst significant global disruptions that continue to affect supply, refining operations, and inventories," Williams explained.
Phien An (via Reuters)
