Larry Kudlow and former Energy Secretary Dan Brouillette discuss why fuel prices are falling more slowly than they are rising, a phenomenon known as 'rockets and feathers.
President Donald Trump on Monday urged gas station owners across the country to lower prices, warning retailers that they could face consequences if they fail to act.
The president's comments came as gasoline prices continued to rise following recent volatility in global oil markets, with Trump arguing that sellers should pass on lower crude oil costs to consumers.
He also renewed his criticism of California's gasoline tax policies.
“Gasoline Dealers Must Lower Their Prices, ASAP!” Trump announced on Truth Social. “They are very high considering that Oil is now at $68 a Barrel, and it is heading south.
TRUMP SEES FORGOTTEN GAS PRICES, DEMANDS DOJ INVESTIGATION
President Donald Trump wants gasoline retailers to lower their prices. (Wina McNamee/Getty Images/Getty Images)
“Dealers must respond quickly to this statement, and do what they know is right – LOWER YOUR PRICES FOR OUR GREAT AMERICAS!” he continued. “There will be no measurement, which is completely illegal. If the Sellers do not do this, big problems are ahead!
“Start targeting around $2.50 a Gallon number, and California should stop charging such heavy Taxes on their Gasoline,” Trump said. “The tax will soon be higher than the Product itself, and the United States will not stand for it, nor will the people of California, who are oppressed by these absurd Taxes, and their Government.”
OIL TANKER TRAFFIC PASSING THROUGH THE STRAIT OF HORMUZ HAS HIT HIGHEST LEVELS AS IT STARTED FOR A WHILE BUT THE DAMAGE REMAINS.
US gasoline prices have eased from last month's spike but remain above year-ago levels, keeping pressure on motorists. (Sean Gallup/Getty Images/Getty Images)
Trump's demand comes nearly a week after he ordered the US Department of Justice to investigate allegations of fuel price gouging by energy companies.
“The big oil companies are not lowering their prices at the pump to match the very low prices they pay for Oil. Those prices are dropping like a rock! In other words, customers are being 'screwed,'” Trump said in a Truth Social post at the time. “I have ordered the DOJ to immediately start looking into this. Gasoline prices better start going down much faster than I can see!”
Americans have seen gasoline prices rise amid the recent conflict between Israel and Iran, although prices have fallen in recent days as tensions eased.
INFLATION RETURNED IN MAY AS RISING ENERGY PRICES PUSHED CONSUMERS.
Gasoline prices at the pump at a Chevron gas station in Bay Harbor Island, Florida, on Monday, June 22, 2026. (Zak Bennett/Bloomberg via Getty Images/Getty Images)
AAA's national average for regular gas was $3.860 per gallon as of June 29, down from $4.391 a month earlier but still higher than last year's average of $3.187.
West Texas crude futures traded around $70.24 a barrel on Monday evening after rising during the Israel-Iran conflict before retreating in recent days.
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Trump signed a Memorandum of Understanding related to Iran on June 17.
FOX Business' Alex Nitzberg contributed to this report.
