Larry Kudlow and former Energy Secretary Dan Brouillette discuss why gasoline prices fall more slowly than they rise, a phenomenon known as “rockets and feathers.”
President Donald Trump on Monday called on gas station owners across the country to lower prices, warning retailers they could face consequences if they didn’t act.
The president’s comments came as gasoline prices remain elevated after recent volatility in global oil marketswith Trump arguing that retailers should pass on lower crude oil costs to consumers.
He also renewed his criticism of California’s gasoline tax policy.
“Gasoline retailers must drop prices IMMEDIATELY!” Trump said on Truth Social. “They are too high given that oil is now at $68 a barrel and going south.
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President Donald Trump has demanded that gasoline retailers reduce gasoline prices. (Win McNamee/Getty Images/Getty Images)
“Retailers should act quickly on this announcement and do what they know is the right thing to do — LOWER YOUR PRICE FOR OUR GREAT AMERICAN PEOPLE!” he continued. “There will be no measurements, which is absolutely illegal. If retailers don’t, there are big problems ahead!
“Start targeting around $2.50 a gallon and California should stop charging such high gas taxes,” Trump added. “Soon the tax will be higher than the product itself, and the United States will not support it, nor will the people of California, who are being abused by these ridiculous taxes, and their own government.”
U.S. gas prices have eased from last month’s spike, but remain well above last year’s levels, continuing to put pressure on drivers. (Sean Gallup/Getty Images/Getty Images)
Trump’s demand comes nearly a week after he ordered the US Justice Department to investigate alleged fuel price gouging by energy companies.
“Great Oil companies are not lowering their pump prices commensurate with the dramatically lower prices they pay for oil. These prices are dropping like a rock! In other words, customers are being “rip-off,” Trump said in a Truth Social post at the time. “I instructed the Ministry of Justice to begin this study immediately. Gasoline prices better start falling a lot faster than I can see!”
Americans have seen fuel prices rise during the recent conflict between Israel and Iran, although prices have eased in recent days as tensions eased.
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Fuel prices at a Chevron gas station in Bay Harbor Island, Florida on Monday, June 22, 2026. (Zach Bennett/Bloomberg via Getty Images/Getty Images)
The national average price for AAA regular gasoline was $3.860 a gallon as of June 29, up from $4.391 a month earlier, but still above last year’s average of $3.187.
West Texas Intermediate crude futures were trading around $70.24 a barrel on Monday evening after rallying amid the Israel-Iran conflict before retreating in recent days.
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Trump signed a Memorandum of understanding related to Iran on June 17.
FOX Business’ Alex Nitzberg contributed to this report.
