Treasury Secretary Scott Bessent warned oil and gas companies on Tuesday to lower their prices, saying the administration is watching the industry ahead of the Fourth of July holiday, a day after President Donald Trump demanded retailers target $2.50 a gallon.
“I would encourage them to be good actors, especially in the 250th anniversary, because we’re watching,” Bessent said in an interview with Fox News on Tuesday morning, addressing big oil, independent and international retailers. Bessent said oil companies were probably making “record profits” and said it was “time to do something for the American people.”
Trump shared these sentiments in a Truth Social post on Monday, writing that if retailers don’t drop their prices, “big problems lie ahead.”
“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 wrote. “The Retailers must quickly react to this statement, and do what they know is right — DROP YOUR PRICE FOR OUR GREAT AMERICAN PEOPLE!”
The warnings from the administration’s top economic official and the president come as the national average price for a gallon of gas stands at $3.85, according to AAA. That is cheaper than prices a month ago but still higher than levels during last year’s Fourth of July holiday.
Oil prices have fallen sharply this month after the U.S. and Iran signed a memorandum of understanding to end the conflict. Though recent clashes between the two countries have threatened the collapse of the peace deal, the price of Brent crude is only $1 more expensive than before the conflict began, and the index is heading for its biggest quarterly loss since 2020, when the Covid-19 pandemic hit.
Both Bessent and Trump invoked the upcoming 250th anniversary of the country’s founding and the Fourth of July holiday, another example of how the administration is trying to prepare for the nation’s birthday. Trump has ordered several renovations in Washington in particular in preparation for this year’s celebrations.
A record-high 72 million people are expected to travel during the holiday, despite higher gas prices compared with last year, according to AAA. The number of people driving or flying over the holiday weekend has remained relatively flat since last year, the group found, while other modes of transportation such as cruises have gained popularity. Domestic car rentals are 10% more expensive than last year, and domestic flight tickets overall are averaging at $830 a ticket, AAA found.
The Treasury secretary’s warning follows a similar move by Trump last week, when he ordered the Department of Justice to investigate major energy companies over price gouging claims. MSI previously reported that Trump accused oil companies of gouging customers by failing to cut gasoline prices in line with falling crude oil costs, directing the DOJ to “immediately start looking into this.”