President Donald Trump is turning his falling-oil-price argument into a direct threat against gas stations, demanding that retailers cut prices “immediately” and aim for roughly $2.50 a gallon.
Trump tied his demand directly to crude prices, arguing that stations had no excuse to keep charging drivers as oil slid toward $68 a barrel.
“Gasoline Retailers must get their Prices down, IMMEDIATELY!” Trump wrote in a Truth Social post.
“They’re too high considering that Oil is now at $68 a Barrel, and heading south. The Retailers must quickly react to this statement, and do what they know is right — DROP YOUR PRICE FOR OUR GREAT AMERICAN PEOPLE!”
Trump warned retailers against using lower oil costs to pad profits while drivers keep paying more.
🚨 BREAKING: President Trump has just told gas retailers to IMMEDIATELY drop prices to around $2.50 per gallon and STOP OVER-CHARGING
Or they will face “BIG PROBLEMS” 👀
“The Retailers must quickly react to this statement, and do what they know is right — DROP YOUR PRICE FOR… pic.twitter.com/2KC66RMX35
— Eric Daugherty (@EricLDaugh) June 29, 2026
“There will be no gauging [sic], which is totally illegal. If Retailers don’t do this, big problems lie ahead!” he added.
The president then put a number on what he wants to see at the pump. After naming $2.50 a gallon as his target, Trump turned the post into an attack on California’s tax-heavy pump prices.
“And California should stop charging such heavy Taxes on their Gasoline,” Trump continued.
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“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.”
The broadside landed just before California drivers are set to absorb another gas-tax increase.
Beginning July 1, the state’s gasoline excise tax will climb by 2.2 cents, raising it to 63.4 cents per gallon.
The hike affects only the state excise tax, not the other federal and sales-tax charges drivers already see folded into the final price.
California’s inflation-linked fuel tax system dates to 2017, and the revenue feeds the state’s road, highway and transportation programs.
California Republicans in Congress are pressing Gov. Gavin Newsom to stop the hike before it kicks in.
“Instead of further unaffordable increases to California’s gasoline excise tax, we urge you to prioritize commonsense energy policies that will provide meaningful relief for all Californians,” lawmakers led by Rep. David Valadao wrote Friday.
Newsom has refused to back off the tax increase, casting suspension efforts as a threat to transportation funding rather than a guaranteed break for motorists.
He has also tried to pin higher fuel costs on Trump’s confrontation with Iran.
“Trump’s Iran war is costing Americans $1.5 billion more at the pump this week alone, and what are Americans getting in return? Not better roads. Not cleaner air. Just higher prices as corporations pocket the higher prices and cash in on Trump’s chaos,” Newsom remarked.
“‘Drill Baby Drill’ was always a lie to enrich Trump’s Big Oil donors — not a strategy to keep prices low, because oil is a global good with a global price.”
In March, his office framed repeal efforts as a giveaway to oil companies, not a sure path to cheaper gas.
“Repealing gas taxes wouldn’t lower prices at the pump — it would hand oil companies a massive tax break with no guarantee that a single cent would be passed on to drivers,” the office wrote.
Totally FALSE story (again) from the NY Comic Book!
FACT: CA’s gas tax goes up AUTOMATICALLY every year to adjust for inflation because California voters said so back in 2018 … BEFORE Gavin Newsom was Governor! https://t.co/IoK3tVqqYL
NY Post, if you are going to cover the… https://t.co/3gPOQpaXbK
— Governor Newsom Press Office (@GovPressOffice) June 2, 2026
As of Monday, California drivers were paying about $5.45 on average for a gallon of regular gas, compared with a national average of $3.86, according to AAA.
The retailer warning came days after Trump put Big Oil in his sights, saying the Justice Department should look at whether companies were dragging their feet as crude prices fell.
“The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil,” Trump wrote Wednesday. “Those prices are dropping like a rock!”
“Gasoline prices better start going down a lot faster than what I’m seeing!” he added.
Trump said the DOJ should “immediately” investigate, though he did not publicly identify specific companies.
The Justice Department did not confirm a probe, but a spokesperson framed fuel affordability as a national issue.
“The price of fuel is not only a national security issue, it impacts the wallet of every American. We will always commit to ensuring affordability in this nation,” the spokesperson said.
The pump-price fight is unfolding after months of energy-market turbulence tied to the conflict with Iran.
The pressure campaign comes after the Iran conflict jolted oil markets, with U.S. and Israeli strikes followed by Tehran’s retaliation against Israel and Gulf states housing American bases.
The possibility of a wider regional war rattled global markets and raised fears that U.S. drivers could face another painful run-up at the pump.
With crude easing again, Trump is arguing that the market cooldown should be visible to drivers almost immediately.
Pump prices can lag behind crude because stations often sell through fuel purchased during higher-cost periods.
“Gasoline prices don’t move in lockstep with crude oil, especially during a major global disruption that is still affecting supply, refining and inventories,” American Petroleum Institute spokesperson Bethany Williams said.
Trump’s repeated public pressure is now aimed at refiners, distributors and retailers as the White House tries to show consumers that cheaper crude can turn into real savings.
After several spikes above $100 earlier in the conflict, crude has settled closer to $70 a barrel.
The Strait of Hormuz — a chokepoint for roughly 20 percent of the world’s oil — had become part of the market shock before the U.S. and Iran reached a fragile ceasefire.
The diplomatic picture stayed murky Monday, with Tehran denying U.S. talks were imminent even after Trump said negotiations would restart in Qatar at Iran’s request.
“An expert delegation from the Islamic Republic of Iran will travel to Doha later this week” to review how provisions of the memorandum will be carried out, Foreign Ministry spokesman Esmaeil Baqaei remarked.
“We have not yet entered the stage of negotiating a final agreement,” he added, saying that “over the coming days, we will not have any negotiation meetings with the U.S. side at any level.”
