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US President Donald Trump leaves after taking questions from the click at the South Lawn upon returning to the White House in Washington, DC, on May 4, 2025.
Alex Wroblewski | Afp | Getty Images
President Donald Trump has claimed that fuel costs have fallen underneath $2 in keeping with gallon, in his push to persuade the Federal Reserve to decrease rates of interest.
“Gasoline just broke $1.98 a Gallon, lowest in years,” Trump mentioned in a publish on his social media platform Truth Social on Friday. “Consumers have been waiting for years to see pricing come down. NO INFLATION, THE FED SHOULD LOWER ITS RATE!!!”
U.S. drivers, on the other hand, have been paying $3.165 in keeping with gallon on moderate Monday, in step with the motorist affiliation AAA. That’s an build up of just about 2 cents from remaining week and about $1.18 extra in keeping with gallon than Trump’s declare.
GasFriend has additionally noticed gasoline costs upward thrust about 2 cents over the last week to $3.12 in keeping with gallon, in keeping with knowledge from greater than 12 million value experiences overlaying over 150,000 gasoline stations around the nation. The build up this week is the primary time drivers have paid extra on the pump in just about a month.
Still, the nationwide gasoline value moderate is down 12 cents in comparison with remaining month and 49.6 cents not up to the similar duration remaining 12 months, in step with GasFriend knowledge.
RBOB fuel futures
RBOB Gasoline futures did contact $1.98 in keeping with gallon on Thursday, the day ahead of Trump’s publish. The contract is these days buying and selling at round $2 after hitting a low of about $1.96 all the way through Monday’s buying and selling consultation. The RBOB contract, on the other hand, does no longer replicate what drivers are these days paying on the pump. The contract tracks wholesale, unfinished fuel ahead of different prices are incorporated corresponding to blending in ethanol to provide retail gasoline.
When requested by way of CNBC whether or not the president was once referencing RBOB, Trump management officers pointed to the contract’s contemporary value motion.
Patrick De Haan, head of petroleum research at GasFriend, mentioned handiest analysts, wholesalers and gasoline patrons at massive retailer chains care about RBOB.
“That price is not inclusive of anything. It excludes taxes, it excludes tariffs, transportation, the cost of doing business, credit card fees — I mean all of it,” he mentioned.
RBOB Gasoline
“It does not come anywhere near explaining what consumers are paying,” the analyst added. “It would be irrelevant to the consumer to know what the price of RBOB is because they’re not paying the wholesale price of RBOB.”
Average pump value would possibly fall underneath $3 a gallon
According to De Haan, there are a couple of puts the place a shopper would possibly pay much less. Gas costs are within the $2.20 vary at some particular person stations in states corresponding to Texas and Tennessee, he mentioned
“Nothing at retail level that I’ve seen in the last couple of weeks has been below $2 a gallon,” he mentioned. However, De Haan mentioned he has noticed some particular person bills of $1.99 in keeping with gallon, however those replicate loyalty level redemptions that buyers use to cut back what they pay on the pump.
“In an apples-to-apples comparison, we have not seen a retail price available to everyone below about $2.20 a gallon, but what we have seen is consumers can lower their prices through the use of points and other promotions,” De Haan mentioned.
Gas costs within the U.S. may just quickly dip underneath $3 in keeping with gallon as refinery upkeep wraps up and provides build up within the U.S., De Haan mentioned. Prices on the pump are these days on the lowest ranges since 2021, De Haan mentioned.
White House spokesperson Taylor Rogers mentioned gasoline costs hit document lows all the way through Trump’s first time period and are falling “again thanks to President Trump unleashing American energy.”
Gas costs have dropped during the last month as crude oil has plummeted on recession fears because of Trump’s price lists and OPEC+ manufacturers impulsively bringing extra provide to the marketplace.
“While some of the damage done by Bidenomics is still lingering, President Trump’s economic agenda is lowering prices for American families at lightning speed,” Rogers mentioned.
