Trump Urges Gas Stations to Lower Prices Immediately

On Monday, former President Donald Trump demanded that gas stations across the United States cut their prices "IMMEDIATELY," citing that oil prices have fallen to $68 a barrel and continue to drop. This call to action was made via a post on his social media platform, Truth Social.

"Gasoline retailers must reduce their prices, NOW! Prices are too high considering oil is now at $68 a barrel and falling," Trump wrote, setting a target price of $2.50 per gallon. He warned that "if retailers fail to comply, they will face significant consequences."

Trump also took aim at California, where gas prices range from $5.20 to $5.49 per gallon, significantly above the national average of $3.86 per gallon, as reported by the American Automobile Association (AAA) on Monday.

"California should stop imposing such high taxes on gasoline. Soon, the tax will exceed the cost of the product itself, and the United States will not stand for this, nor will the people of California, who are being exploited by these outrageous taxes and their own government," Trump declared.

This message was delivered just one day before California is set to increase its state gas tax from 61.2 to 63.4 cents per gallon on July 1, the highest in the nation. This automatic adjustment is linked to the state's inflation index, as established by law in 2017.

Ongoing Pressure on the Oil Sector

Trump's pressure on the oil sector is not new. On June 24, he directed the Department of Justice to investigate major oil companies for maintaining high profit margins despite falling crude prices. This action reflects his frustration with the slow pace at which gas stations lower their prices in response to declining oil costs.

The backdrop of this situation is the energy crisis triggered by the conflict with Iran, which drove crude oil prices above $125 per barrel and pushed gas prices to a peak of $4.56 per gallon on May 21, 2026.

Impact of the "Islamabad Agreement"

Following the announcement of the "Islamabad Agreement" with Iran on June 15, Brent crude oil prices dropped by 4.67% to $83.27 per barrel, and gas station prices began to decrease, albeit slowly.

Analysts point out that gasoline retailers historically pass on price increases more quickly than decreases, which explains the gap between the current crude oil price and what consumers pay at the pump.

Treasury Secretary Scott Bessent projected that gas prices could fall to as low as $3 per gallon between June and September 2026. Meanwhile, GasBuddy analyst Patrick De Haan estimated that a full return to pre-conflict prices with Iran might not occur until early or mid-2027.