Larry Kudlow and former Energy Secretary Dan Brouillette recently examined the “rockets and feathers” phenomenon, analyzing why gasoline prices typically spike rapidly but decline much more slowly.
President Donald Trump has issued a stern warning to gas station owners across the country, demanding an immediate reduction in fuel prices and suggesting that retailers could face serious consequences if they fail to comply.
The president’s directive comes amid continued price volatility in global oil markets. Trump argued that retailers are failing to pass the savings from lower crude oil costs down to the American consumer.
The president also took aim at California’s aggressive fuel taxation policies.
“Gasoline Retailers must get their Prices down, IMMEDIATELY!” Trump posted on Truth Social. “They’re too high considering that Oil is now at $68 a Barrel, and heading south.”
President Donald Trump demanded that gasoline retailers lower their prices. (Win McNamee/Getty Images / Getty Images)
“The Retailers must quickly react to this statement, and do what they know is right — DROP YOUR PRICE FOR OUR GREAT AMERICAN PEOPLE!” he continued. “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, and California should stop charging such heavy Taxes on their Gasoline,” Trump added. “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.”
U.S. gas prices have eased from last month’s spike but remain well above year-ago levels, keeping pressure on drivers. (Sean Gallup/Getty Images / Getty Images)
This demand follows a directive issued nearly a week ago, in which the president ordered the U.S. Department of Justice to investigate energy companies for alleged price gouging.
“The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil. Those prices are dropping like a rock! In other words, customers are being ‘gouged,'” Trump asserted in a Truth Social post. “I have instructed the DOJ to immediately start looking into this. Gasoline prices better start going down a lot faster than what I’m seeing!”
While fuel prices rose during the recent conflict between Israel and Iran, they have begun to ease as geopolitical tensions have subsided.
Fuel prices on a pump at a Chevron gas station in Bay Harbor Island, Florida, on Monday, June 22, 2026. (Zak Bennett/Bloomberg via Getty Images / Getty Images)
According to AAA, the national average for regular gasoline was $3.860 per gallon as of June 29. While this is a decrease from the previous month’s average of $4.391, it remains significantly higher than the year-ago average of $3.187.
West Texas Intermediate crude oil futures were trading around $70.24 per barrel on Monday evening, retreating after a climb during the Israel-Iran conflict.
Additionally, Trump signed a Memorandum of Understanding regarding Iran on June 17.