Bessent Warns Oil Companies to Cut Gas Prices or Face Consequences as Crude Drops
Treasury Secretary Scott Bessent went on offense against oil companies Tuesday, using the Trump administration’s bully pulpit to demand that gasoline retailers cut prices immediately — or face regulatory consequences — as crude oil retreats from war-era highs and drivers continue paying elevated pump prices heading into the Fourth of July holiday weekend.
“We’ve got a chart of how quickly the prices went up and how they followed crude, and we’re going to hold them accountable on the other side,” Bessent said in a televised interview on Fox & Friends. “I would encourage all the gasoline retailers — some of them are owned by big oil, some of them are independent, some are international convenience chains — I would encourage them to be good actors, especially on the 250th Anniversary, because we’re watching.”
The Price Gap That Triggered the Warning
The administration has built an internal tracker showing how retail gasoline prices tracked crude oil as it spiked during the U.S. and Israeli strikes on Iran — when barrels routinely sold above $95 and $100 per barrel — and Bessent said the data will be used to measure whether retailers pass savings on to consumers as crude retreats. Crude settled at $71.51 per barrel Tuesday, down sharply from wartime peaks but still meaningfully above pre-conflict levels of roughly $72 in late February.
National average gas prices stand at approximately $3.85 per gallon — roughly 50 cents higher than one year ago — despite the pullback in crude. Major oil company stocks reflect the disconnect: Exxon Mobil shares are up 11% year-to-date, Chevron is up 8.1%, and ConocoPhillips has gained 7.8% on the year.
“They probably had record profits on gasoline retailing,” Bessent said. “Now it’s time to do something for the American people.”
Trump Sets the Tone on Truth Social
The pressure campaign began with a Truth Social post Monday in which Trump demanded immediate action from the industry. “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! There will be no gauging, which is totally illegal. If Retailers don’t do this, big problems lie ahead!”
The term “gauging” — a reference to price gouging — signals the administration is prepared to invoke consumer protection statutes if retailers fail to bring prices in line with declining crude. The ultimatum carries particular political weight heading into the country’s 250th birthday celebration, when millions of Americans are expected to drive to holiday destinations.
The White House framed the intervention as a continuation of the administration’s broader effort to ease cost-of-living pressures. Bessent has increasingly taken on a public-facing role as the administration’s point person on energy pricing, coordinating with the Department of Energy and the Federal Trade Commission to monitor retail markets.
Industry analysts were divided on whether the pressure would produce results. Some noted that retail gasoline margins are notoriously volatile and often lag crude price movements by several weeks due to supply chain and inventory dynamics. Others suggested the public nature of the ultimatum — combined with FTC scrutiny — would force compliance.
Congressional Democrats offered cautious support while urging the administration to go further. Senator Elizabeth Warren of Massachusetts called the move “a welcome acknowledgment that working families have been squeezed at the pump” but noted that a decade of oil company mergers had concentrated the market in ways that made regulatory pressure less effective without structural reform.
The FTC declined to comment on whether formal investigations had been opened. A Treasury Department spokesperson said the administration would release an updated pricing dashboard by the end of the week showing retail versus crude differentials for major metropolitan areas.
