In a statement posted on his Truth Social page on Tuesday, U.S. President Donald J. Trump ordered U.S. gasoline retailers to cut their prices “immediately”.
“Gasoline Retailers must get their Prices down, IMMEDIATELY! They’re too high considering that Oil is now at $68 a Barrel, and heading south,” Trump said in the statement.
“The Retailers must quickly react to this statement, and do what they know is right – DROP YOUR PRICE FOR OUR GREAT AMERICAN PEOPLE! There will be no gauging, which is totally illegal,” he added.
“If Retailers don’t do this, big problems lie ahead! Start targeting around the $2.50 a Gallon number,” he continued.
Rigzone contacted the Virginia, U.S. based NACS – which describes itself as the leading global trade association dedicated to advancing convenience and fuel retailing – and SIGMA – which describes itself as the national trade association representing the most successful, progressive, and innovative fuel marketers and chain retailers in the United States and Canada – for comment on Trump’s statement.
In response, Jeff Lenard, Vice President of NACS Media and Strategic Communications, told Rigzone that “approximately 90 percent of the cost of a gallon of gas is determined before the retailer takes possession of the fuel, and after expenses – especially credit card fees – retailers typically make about five percent profit (before taxes) on the fuel that they sell”.
“Gas prices often rise and fall because of crude oil prices, but that relationship is not symmetrical. When oil prices rise, gas prices are slow to follow as retailers hold back increases – and lose margin – to attract increasingly price-conscious customers,” he added.
“When oil prices go down, gas prices are also slow to follow as retailers recover lost margins,” he continued.
“Another complicating factor when prices drop is that it takes time for retailers to reduce their fuel inventories that were purchased at a higher price. Government studies have shown that about 80 percent of price increases and decreases are passed through within two weeks,” he went on to state.
At the time of writing, SIGMA has not responded to Rigzone.
Rigzone has contacted the White House for comment on Lenard’s statement. At the time of writing, the White House has not responded to Rigzone.
According to the AAA Fuel Prices website, the average regular gasoline price in the U.S. came in at $3.8470 per gallon on June 30.
As of July 1, the average price of regular gasoline in the U.S. is again $3.8470 per gallon, the AAA Fuel Prices site showed. The week ago average was $3.9280 per gallon, the month ago average was $4.3220 per gallon, and the year ago average was $3.1790 per gallon, according to the site.
Cheapest Price Since March
In a blog posted on its website on June 29, GasBuddy noted that U.S. drivers hadn’t seen gasoline “this cheap since March” and added that the July 4 outlook was “cautiously optimistic”.
GasBuddy outlined in the Monday blog that, according to its data, the nation’s average price of gasoline had fallen 6.9 cents over the last week and stood at $3.78 per gallon. GasBuddy said in the blog that the national average was down 55.6 cents from a month ago and was 64.2 cents per gallon higher than a year ago.
“Average gasoline prices fell in 46 states over the last week, with diesel declining in 49, pushing the national average to its lowest level since mid-March,” Patrick De Haan, Head of Petroleum Analysis at GasBuddy, said in the blog.
“The declines came despite a turbulent week, as fresh attacks were traded between the U.S. and Iran before both sides agreed to halt hostilities just in time Sunday, preventing what could have been a significant spike in oil prices,” he added.
“For now, GasBuddy anticipates the national average will continue drifting lower this week, though the situation remains anything but predictable,” he warned.
“A handful of price-cycling states could see prices jump ahead of the July 4 holiday, while many states that already cycled higher last week should see prices fall back down,” De Haan noted.
“Motorists in non-cycling states are likely to see continued relief, but the fragile nature of the U.S.-Iran situation means the outlook could shift quickly,” he went on to state.
Most Common USA Gas Price
GasBuddy noted in its blog that the most common U.S. gas price encountered by motorists was $3.49 per gallon, “unchanged from a week ago”. This was followed by $3.69 per gallon, $3.59 per gallon, $3.79 per gallon, and $3.99 per gallon, according to the blog.
The blog highlighted that the median U.S. gas price was $3.69 per gallon, “unchanged from last week and about nine cents lower than the national average”. According to the blog, the top 10 percent of stations in the country averaged $5.12 per gallon and the bottom 10 percent averaged $3.07 per gallon.
The states with the lowest average prices comprised Indiana, at $3.21 per gallon, Texas, at $3.24 per gallon, and Oklahoma, at $3.29 per gallon, the blog showed. The states with the highest average prices comprised Hawaii, at $5.43 per gallon, California, at $5.38 per gallon, and Washington, at $5.12 per gallon, according to the blog.
The biggest weekly changes were seen in Colorado, with a 20.4 cent price reduction, Washington, with a 19.4 cent reduction, and Oregon, with an 18.4 cent decrease, the blog revealed.
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