Former President Donald Trump declared the other day that gasoline prices were down to $1.98 in some states. Environmental experts are currently taking a close look at this pronouncement. American Automobile Association (AAA) data shows the average price nationwide is $3.18 per gallon. Experts and fact-checkers agree that Trump’s claims are false, with none of the states even close to reporting an average price of $1.98.
Consumers in Mississippi are benefitting from the lowest average gas prices in the county. That’s actually not at all bad given they’re paying $2.66/gallon. Experts caution that fuel prices are extremely volatile. Looking at the big picture trends shows that prices are far higher than what Trump claims.
Current Gas Price Landscape
The figures released last week by the U.S. Energy Information Administration (EIA) contain a couple of notable tidbits. Year ending on April 28th, net gas prices were $3.13 a gallon. This is a modest uptick from $3.10 for the week ending on January 20. This ongoing increase in prices in recent months is in stark opposition to Trump’s assertion of a figurative nosedive.
Trump’s comments are especially interesting given the backdrop of ongoing public concern over the cost of fuel. In January, the annual rate of inflation was 3%. By March, it was down to 2.4%, indicating a reversal in economic circumstances, but gas prices did not need to be treated in the same vein necessarily.
So go Trump & Co.—making claims that gasoline prices have fallen to levels stated. David Bieri, an economist, noted, “Prices are still going up – they’re just not going up as rapidly.” Whether prices are leveling off or increasing at a slower pace. They are still very high by historical standards.
Misleading Claims Under Scrutiny
Critics of Trump’s statements to date are understandably quick to emphasize the differences between what he’s claimed and what the data actually show. Tucker Balch stated, “I’m not aware of any data that supports that,” emphasizing the lack of evidence for Trump’s assertion that gasoline has reached $1.98 per gallon in any state.
Fifth, since Trump took office, the increase in gas prices have been just about zero, according to U.S. federal government data. Binder highlighted this trend, stating, “That puts gas prices right around where they were when Trump took office.” Oil prices are down sharply, plunging roughly 25% since Trump’s inauguration. Gasoline prices have not undergone the radical shifts that many had predicted.
Broader Economic Context
Beyond the household impacts, fuel prices threaten to erode the broader economic gains we’ve made since 2020. Speculation about a pending global trade slowdown began during the period following Trump’s tariffs. It’s development like this that has triggered a collapse in oil prices. Many factors play into a complicated cocktail that drive gas prices. This means that prices are affected by a host of other variables rather than just falling.
As consumers feel the impact of these broader changes, the debate over fuel prices continues to be a relevant one. Our economic data reveals the truth—average gas prices have not lowered as dramatically as Trump pretends they have. The current average is still well above what most Americans are willing to accept.
