Trump Urges Gas Retailers to Cut Fuel Prices Immediately

President Donald Trump renewed his criticism of U.S. gasoline retailers on Monday, arguing that pump prices remain too high despite a recent decline in global crude oil prices. In a post on Truth Social, Trump called on retailers to lower gasoline prices “IMMEDIATELY!” and repeated warnings he made last week about the possibility of a federal investigation into alleged price gouging.

Trump said gasoline prices should fall in line with crude oil, which has retreated to levels seen before the recent Iran conflict. Without presenting specific evidence, he suggested that the current prices charged at gas stations amount to illegal price gouging and warned retailers they could face “big problems.” The president also said he believes the national average price of gasoline should be around $2.50 per gallon, below the roughly $2.93 per gallon average recorded before the conflict began.

According to AAA’s fuel price tracker, the national average gasoline price on Tuesday stood at $3.85 per gallon. That was slightly higher than Monday’s level but lower than last week’s average of $4.02. Prices dropped below $4 per gallon two weeks ago for the first time since late March after peaking above $4.50 per gallon during the conflict, which contributed to higher inflation. Fuel prices have eased since an interim peace agreement led to the reopening of the Strait of Hormuz, a key shipping route that carries about 20% of the world’s oil. However, the agreement remains fragile as recent exchanges of fire have continued to disrupt shipping activity.

Trump also criticized California’s fuel taxes, urging the state to reduce what he described as excessive charges on gasoline. He claimed taxes could soon exceed the value of the fuel itself. Data from the California Energy Commission indicates that state taxes and environmental fees account for roughly 20% of the price of a gallon of gasoline. AAA reported California’s average gasoline price on Tuesday at $5.43 per gallon, making it the third-highest in the nation behind Alaska and Hawaii.

California Gov. Gavin Newsom’s press office responded on X by reposting Trump’s comments alongside a reminder of his March 12 statement that, “When oil prices go up, we make a lot of money.” In another post, Newsom’s office claimed the GOP-backed Iran war has added an estimated $63 billion in fuel costs nationwide, including about $243.14 per California household so far this year.

Crude oil prices continued to soften on Tuesday, with Brent crude trading just below $73 per barrel, while U.S. benchmark West Texas Intermediate was priced at $70.64 per barrel. Although both benchmarks have fallen from recent highs, WTI remained above the $68 per barrel level cited by Trump.

Oil market researcher Rory Johnston noted on X that crude oil and gasoline are separate commodities whose prices do not always move in lockstep. He said crude supplies are currently relatively loose, while gasoline remains one of the tightest markets compared with crude.

Chevron Chief Financial Officer Eimear Bonner echoed that view in comments to CNBC last week, saying there is widespread concern over fuel costs but emphasizing that lower crude prices take time to be reflected at gas stations. Bonner said gasoline prices are expected to continue declining as market conditions stabilize.