In remarks made by U.S. Energy Secretary Chris Wright on Sunday, he indicated that gasoline prices may have already reached their peak, but he expected them to remain above this level for a longer period—at least until next year.
Wright said the rise in prices was due to the war in Iran and the unfavorable political climate it created for President Donald Trump’s administration before the November midterm elections, when the Republican Party is trying to maintain a narrow majority in both the Senate and the House of Representatives.
The minister added, according to his remarks to CNN, that a drop in price to below $3 per gallon could happen later this year, or it may be delayed until next year. However, he stressed that prices have likely moved into the post-peak phase and will decline once the conflict ends.
Other officials in the Trump administration also expressed different expectations. For example, Treasury Secretary Scott Bessent had said last week that prices would fall to around $3 during the summer, while Trump said gasoline prices could remain high until November.
Despite the differences in forecasts, everyone agreed that prices will eventually decline after the end of the war. Wright said that reaching a price below $3 would have a major impact on inflation, emphasizing that this level would be achieved for sure.
Estimates from the American Automobile Association (AAA) indicate that the average price of regular gasoline reached $4.05 per gallon on Sunday, compared with $3.16 a year earlier.
_______________________________________
Check out the latest Stocks and Indices News.
Check out the latest Commodities News.
Check out the latest Cryptocurrency News.
Check out the latest Energy News.
