President-elect Donald Trump isn’t even in office yet and it already appears that one of his stated policy objectives is having a positive effect on the price of a commodity most Americans find vital and use daily: Gasoline.For the first time in over three years, average U.S. gasoline prices dropped below $3 a gallon on Monday, providing relief to consumers who have grappled with rising inflation in recent years.
Fuel prices have steadily declined since the end of the summer driving season, offering a boost to consumer spending. This comes despite broader inflationary pressures showing signs of stalling in October, as the cost of other goods and services continued to rise. According to market tracker GasBuddy.com, the national average price for regular gasoline fell to $2.97 per gallon on Monday, marking its lowest level since May 2021.
Oklahoma recorded the lowest average retail gasoline price in the country at $2.42 per gallon, while Hawaii had the highest at $4.48 per gallon. Gasoline prices have steadily declined this year compared to last, as the rapid post-pandemic growth in fuel demand has slowed significantly. And while oil production during the Biden-Harris regime has been up, other inflationary policies adopted by the White House and early big spending packages passed by a Democrat-controlled Congress were to blame for keeping gas prices elevated along with a range of other everyday goods used by consumers, according to economists.
“One would need to count over 1,300 days since we’ve seen the national average this low, with the affordability of gasoline at its lowest non-COVID level since 2015,” said Patrick De Haan, head of petroleum analysis at GasBuddy. Gasoline prices are expected to face further downward pressure, with the national average possibly decreasing by an additional 10 to 15 cents by Christmas, he added.
Trump, meanwhile, has vowed to “drill, baby, drill” during his second term, alluding to the easing of regulations that stand in the way of more domestic oil and gas exploration and production. At the same time, Trump’s EPA is expected to do away with what Republicans see as overly draconian gas mileage standards for vehicles that Biden implemented in the hopes of pushing the country toward inefficient and expensive electric vehicles, many of which don’t hold their value for long after purchase because of low demand.
“U.S. oil refining capacity rose for the second year in a row last year, the EIA’s annual update showed earlier this year. Elsewhere, refining capacity has been boosted by the opening of large new plants, such as Nigeria’s 650,000 bpd Dangote refinery and Mexico’s 340,000 bpd Dos Bocas,” Reuters reported on Monday. “Meanwhile, fuel availability improved as refining capacity grew in the U.S. and in other parts of the world, easing some of the sting from global supply disruptions caused by Russia’s invasion of Ukraine.”
Republicans argued at the time that Biden canceled the Keystone XL pipeline project after Trump green-lit the project, while also moving to limit oil and gas production — two factors that also led to higher prices at the pump but which could have reversed the upward trend had Biden stuck to Trump’s policies of enhancing and then protecting domestic production.
Disclaimer: This article may contain commentary which reflects the author’s opinion.