President Donald Trump warned gasoline retailers late Monday Monday that "big problems lie ahead" if they don't cut prices to about $2.50 per gallon, his most direct threat yet against fuel sellers as pump prices remain well above pre-war levels.
Elevated fuel costs have become a political liability for Trump and congressional Republicans, who hold narrow majorities in both chambers
Bloomberg
President Donald Trump warned gasoline retailers late Monday Monday that "big problems lie ahead" if they don't cut prices to about $2.50 per gallon, his most direct threat yet against fuel sellers as pump prices remain well above pre-war levels.
"Gasoline Retailers must get their Prices down, IMMEDIATELY," Trump wrote on Truth Social. "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."
AAA data put the national average at $3.85 per gallon on Monday. Among all states, California and Hawaii were at the top of the price rankings, with per-gallon averages of $5.43 and $5.49.
Trump also directed criticism at California, calling on the state to reduce its gas taxes. "Soon the Tax will be higher than the Product itself, and the United States will not stand for it," he wrote. A July 1 hike would push California's per-gallon gas tax from 61.4 cents to 63.4 cents.
Monday's post came roughly a week after Trump instructed the Justice Department to investigate oil companies for failing to pass crude price declines on to consumers, accusing them of "gouging" customers. Trump did not name any specific retailers in his Monday post.
An interim U.S.-Iran peace agreement, which included provisions to reopen the Strait of Hormuz — a waterway through which roughly a fifth of the world's oil moves — has contributed to a gradual easing of pump prices in recent weeks. At the height of the conflict, the nationwide average had climbed past $4.50 a gallon.
Chevron $CVX CFO Eimear Bonner pushed back on the gouging accusation after Trump's earlier DOJ threat, saying the timing of retail price relief was outside the industry's immediate control. "It's going to take time though," Bonner told CNBC. "There is a lag between, you know, oil prices and reductions in oil prices and when that shows up at the pump, but we expect that prices will come down as things continue to normalize."
Elevated fuel costs have become a political liability for Trump and congressional Republicans, who hold narrow majorities in both chambers ahead of November's midterm elections.
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