American drivers are finally getting a break at the gas pump.
The average price per gallon dipped below $4 earlier this week and fell by more than 3 cents from Tuesday to Wednesday — a dramatic one-day drop, according to the AAA motor club.
The sudden decrease is good news for motorists. But it came too late for President Trump and the GOP, which suffered sweeping losses in midterm elections dominated by headlines about high fuel costs and affordability.
People were interested in these podcasts
The average price of gas is down 18 cents from a week ago and about 40 cents from a month ago, though far above the $3.07 average Americans paid at this time one year ago.
Mr. Trump and other members of the administration said frustration over the Iran war and related costs likely cost them dearly at the polls, as Democrats retook the House and Senate.
“President Trump was right – Iran did everything they could to drive up the price of oil before the midterm elections, and now prices are tumbling down,” a White House official told The Washington Times.
Two things are driving the plunge. Gas prices fluctuate with seasonal demand, so it is not surprising to see costs ease by mid-autumn, with the summer driving season well in the rearview mirror.
Also, an increasing amount of oil is flowing through the Middle East.
The U.S. military is maintaining a blockade of Iran that is directing ships through the Strait of Hormuz, hoping to shield them from harassment by Tehran forces.
Gulf nations also tapped into alternate routes for crude, such as pipelines that flow to ports outside the strait.
“Crude exports from the Persian Gulf are estimated to have returned to around 80-85% of pre-war levels, including pipeline volumes, while refined product shipments have recovered to roughly 35-40%,” ING, a banking and financial services corporation, said Tuesday. “Reports that Iran may be softening its position on control of the Strait of Hormuz have also reduced concerns over a prolonged disruption to one of the world’s most important oil transit routes.”
Brent crude oil fell slightly under $90 per barrel this week for the first time since August. The drop coincided with optimism about peace talks to settle the Iran conflict.
Gasoline is refined from crude, so the increase in oil supply alleviates price pressure at the pump. However, gas prices often do not fall as quickly as oil prices, as big companies try to protect their bottom lines against future shocks.
The mismatch was a source of frustration for Mr. Trump earlier this year, who said gas companies should have moved more swiftly to cut prices in line with oil.
The White House official said lowering prices would remain a “top priority” for the president.
“The price of oil has dropped tens of dollars per barrel, and the nation’s average price of gasoline has dropped 18 cents in just one week. Thanks to the exceptional work of the U.S. military, more oil is now flowing out of the Persian Gulf than before the Iran conflict began,” the official said.
Gas prices stood at $2.98 per gallon, on average, when Mr. Trump joined forces with Israel to launch airstrikes against Iran.
The early strikes decimated Iranian military infrastructure and killed the long-reigning ayatollah. But Tehran retaliated by striking the energy infrastructure of its Arab neighbors and closing the Strait of Hormuz, which carried about a fifth of the world’s oil supply.
Gas prices ballooned to well over $4 per gallon for a big portion of this year.
While that is below the record $5.01 per gallon recorded under the Biden administration in 2022 – at the outset of the Ukraine war – the price of gas fed the narrative that Mr. Trump was unable to corral inflation as promised.
The cost of diesel skyrocketed to a record $6.50 per gallon in September due to the Ukraine and Iran wars, sparking a series of Trump administration moves to free up “red-dye” diesel for highway use and agree to the controversial importation of Russian fuel.
Mr. Trump said he had no regrets about his decisions in Iran and that costs would come down soon.
“I think, historically, this will be a very good decision,” Mr. Trump told CBS’s “60 Minutes” program. “Is it a good decision for today and tomorrow? Maybe not. But you know, I have to go with what’s right for our country. If they had a nuclear weapon during my term, I would be excoriated far worse than what’s happened.”
Contact the author
Please read our comment policy before commenting.