US treasury secretary warns oil and gas companies to lower prices: ‘we’re watching’

Scott Bessent, the US treasury secretary, issued a veiled warning to oil and gas companies to lower their prices on Tuesday, a day after Donald Trump berated those retailers on social media for not dropping their prices fast enough and demanded they target $2.50 a gallon.

“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.

Bessent also said that oil companies were probably making “record profits”, and said it was “time to do something for the American people”.

Trump shared these sentiments in a Truth Social post on Monday, writing that if retailers don’t drop their prices, “big problems lie ahead”.

“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!” he wrote.

Oil prices have fallen sharply this month, after the US and Iran signed a memorandum of understanding to end the 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.

Still, the current national average price for a gallon of gas is $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’s invoked the upcoming 250th anniversary of the country’s founding and the Fourth of July holiday, another example of how the administration is trying to prepare for the nation’s birthday. Trump has ordered several renovations in Washington in particular in preparation for this year’s celebrations.

A record-high 72 million people are expected to travel during the holiday, despite higher gas prices compared with last year, according to AAA. The number of people driving or flying over the holiday weekend has remained relatively flat since last year, the group found, while 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 at $830 a ticket, AAA found.