Trump demands gas retailers cut pump prices immediately, warns of 'big problems' if they don't

WASHINGTON, DC: President Donald Trump has demanded gas stations slash prices ‘immediately’, warning there would be "big problems" if they failed to act.

The Republican leader insisted fuel prices no longer reflected falling crude oil costs as he accused energy giants of "totally illegal" price gouging.

Fuel prices have eased in recent weeks, with the national average falling to $3.86 a gallon as of Monday, June 29, from nearly $4.50 just months ago.

Crude oil prices, meanwhile, have settled at around $70 a barrel after climbing above $100 multiple times following the outbreak of the US- and Israel-backed military campaign against Iran.

In response, Iran effectively closed the Strait of Hormuz, a vital shipping route through which about 20% of the world's oil supply passes. Although the conflict has not officially ended, the US and Iran are currently observing a fragile ceasefire, easing market jitters and boosting investor confidence.

Trump asks gas retailers to target ‘the $2.50 a Gallon number'

In a fierce Truth Social post, Trump made a direct plea for retailers to “start targeting around the $2.50 a Gallon number,” before renewing his attacks on California's fuel taxes.

“Gasoline Retailers must get their Prices down, IMMEDIATELY! They're too high considering that Oil is now at $68 a Barrel, and heading south. The Retailers must quickly react to this statement, and do what they know is right — DROP YOUR PRICE FOR OUR GREAT AMERICAN PEOPLE!” he wrote.

Trump then warned retailers not to profit from falling oil prices at the expense of consumers.

“There will be no gauging, which is totally illegal. If Retailers don't do this, big problems lie ahead! Start targeting around the $2.50 a Gallon number,” he urged.

“California should stop charging such heavy Taxes on their Gasoline. Soon the Tax will be higher than the Product itself, and the United States will not stand for it, nor will the People of California, who are being abused by these ridiculous Taxes, and by their own Government,” the POTUS noted. 

Trump claims ‘big investigation’ into gas prices

Trump’s warning to retailers came as he, last week, insisted that his administration was "doing a big investigation" into gas prices.

"It's ExxonMobil, it's Chevron, it's, uh, Shell, it's, uh, BP, it's a lot of 'em," the president told reporters in the Oval Office on June 23.

"The gasoline, or the oil prices, have come down so much, and we are not seeing anything at the pump by comparison to what they should be. We should be, in my opinion, at $2.25 right now at the pump,” he added.

In late May, Trump downplayed gas prices, which were markedly higher then. "Look, as soon as this war is over, gas is going to– you know, I had gasoline down to $1.85 in Iowa," he said at the time. "And this is peanuts! And I appreciate everybody putting up with it for a little while. It won't be much longer."

Chevron CFO Eimear Bonner said last week that fuel prices are unlikely to return to pre-war levels anytime soon.

"There is a lag between, you know, oil prices and reductions in oil prices and when that shows up at the pump, but we expect that prices will come down as things continue to normalize," she explained.