US President Donald Trump on June 29, 2026, demanded that gasoline retailers lower pump prices immediately to around $2.50 per gallon, posting on Truth Social and issuing a sharp warning of "big problems" if they fail to comply [1, 2, 3]. Trump said price gouging by gasoline retailers is "totally illegal" and stressed the need for urgent action to reduce costs for consumers [1, 4, 2].

Trump specifically criticized California’s high gasoline prices, which averaged about $5.43 per gallon in late June, blaming heavy state petrol taxes and calling them "ridiculous". He said the tax burden was nearing the point where "the tax will be higher than the product itself," and called on California and the US to not tolerate such pricing [3, 5].

The national average gasoline price stood around $3.85 per gallon in late June 2026, according to AAA data, while international crude oil prices had recently eased to about $68–70 per barrel. Trump accused major oil companies of failing to pass on these oil price declines to consumers, stating that prices at the pump were not decreasing commensurately and customers were being "gouged." He has instructed the Department of Justice to investigate potential price gouging and unfair practices in the oil and gasoline markets [1, 3, 5, 6, 7, 8].

The price surge was triggered by the February 28, 2026 strikes by the US and Israel on Iran, which sparked regional conflict and led to a spike in oil prices. Diplomatic efforts and a ceasefire between the US and Iran in April helped ease tensions and lower oil prices, but gasoline costs remain elevated for consumers [1, 4, 3, 6].

US Treasury official Scott Bessent also urged gasoline retailers to reduce prices before the July 4, 2026 US Independence Day holiday, indicating ongoing government scrutiny on gasoline pricing ahead of the 2026 midterm elections falling later in November [9, 1].

Trump’s demand carries clear political undertones, aiming to relieve consumer cost burdens and address voter concerns as the midterm elections approach [1, 3].

The administration’s immediate focus is on seeing pump prices drop to about $2.50 per gallon nationwide by the July 4 holiday weekend, with DOJ investigations and government pressure expected to continue in the coming days [9].