Treasury Secretary and Trump Target Oil Companies Over Pricing as Summer Travel Season Approaches

US Treasury Secretary Scott Bessent issued a direct warning to oil and gas companies on Tuesday to lower their prices, following Donald Trump's sharp criticism of retailers for failing to pass along recent crude price declines to consumers.

"I would encourage them to be good actors, especially in the 250th anniversary, because we're watching," Bessent said in an interview with Fox News on Tuesday morning, addressing big oil, independent and international retailers. He added that oil companies were probably making "record profits", and said it was "time to do something for the American people".

Trump reinforced the message in a Truth Social post on Monday, writing that if retailers don't drop their prices, "big problems lie ahead". The president demanded immediate action on gasoline prices, stating: "Gasoline Retailers must get their Prices down, IMMEDIATELY! 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!"

The pressure comes as oil prices have fallen sharply this month following a US-Iran memorandum of understanding to end their conflict. Though recent clashes between the two countries have threatened the collapse of the peace deal, the price of Brent crude is only $1 more expensive than before the conflict began, and the index is heading for its biggest quarterly loss since 2020, when the Covid-19 pandemic hit.

Despite these declines in oil prices, the current national average price for a gallon of gas remains at $3.85 — cheaper than prices a month ago but still higher than levels during last year's Fourth of July holiday. Both Bessent and Trump invoked the upcoming 250th anniversary of the country's founding and the Fourth of July holiday as context for their appeals, reflecting the administration's broader efforts to prepare for the nation's birthday celebration.

A record-high 72 million people are expected to travel during the holiday weekend, according to AAA. While the number of people driving or flying over the holiday has remained relatively flat since last year, other modes of transportation such as cruises have gained popularity. Domestic car rentals are 10% more expensive than last year, and domestic round-trip flight tickets overall are averaging $830 per ticket, the group found.