Pain at the pump might not ease up for American consumers until 2027, according to Energy Secretary Chris Wright, who said on April 19 that the price of a regular gallon of gas could stay above $3 for the rest of the year.
Wright said a price of $3 per gallon of gas “could happen later this year, [but] that might not happen until next year” in an interview that aired on CNN’s ”State of the Union” program Sunday.
“But prices have likely peaked, and they'll start going down certainly with a resolution of this conflict [in Iran],” Wright predicted while speaking about how the war has impacted energy prices.
As of April 19, the average price for a gallon of regular gas in the U.S. was $4.04, according to data from the American Automobile Association (AAA).
States on the West Coast and the Northeast have the highest prices, according to AAA.
Before the United States and Israel launched Operation Epic Fury against the Iranian regime on Feb. 28, the price for a regular gallon of gas in the U.S. was $2.98.
The Energy Information Administration’s short-term energy outlook, published on April 7, predicted the average retail price for a gallon of gasoline would be $4.30 per gallon in April.
The Energy Information Administration - designed as a nonpartisan agency within Wright’s Department of Energy - estimated the retail price for an average gallon of gasoline will be $3.46 in 2027, above the $3 level he predicted on CNN.
As the chart above shows, for pump prices to fall back to $3 a gallon, we would need to see crude oil prices back around $60 a barrel - a long way down given the disruptions from the Iran War are likely to ripple through the supply chain for months.
Finally, The Hill's White House correspondent, Julia Manchester, reports that President Trump just told her over the phone that he disagrees with Energy Secretary Wright's assessment that gas prices may not drop until next year.
"No, I think he's wrong on that. Totally wrong," Trump said, adding that gas prices will drop "as soon as this ends."
With the Midterms looming ever closer, Trump better hope he's right and Wright is wrong.