Progress at the Pump

The President understands that gasoline prices squeeze families’ budgets. That’s why he has taken a series of bold actions to save Americans money at the pump.  The President announced a historic release from the Strategic Petroleum Reserve in parallel with other countries to help address the imbalance between the supply and demand of oil and to spur greater competition in the gasoline market. And, the President asked the Federal Trade Commission to consider whether illegal conduct is costing families at the pump.  

Industry costs have declined as crude oil and wholesale gasoline prices have receded. Instead of oil and gas companies padding their profits, Americans should see falling prices. We are starting to see results at the pump: 

The average price at the pump is down nearly 10 cents per gallon since the peak last month, and prices are continuing to fall.  

And, the price of gasoline on the wholesale market has fallen even more than that over recent weeks, dropping over 30 cents per gallon since its peak.  The President expects those savings to be passed on to Americans as quickly as possible. To date, it hasn’t been happening fast enough. That’s why the President asked the Federal Trade Commission to examine mounting evidence of anti-consumer behavior by oil and gas companies that keeps prices elevated.

The average price at the pump is now $3.32. This price is in line with the real price of gasoline over the previous ten years from 2011-2020.  While current price levels aren’t unprecedented, the President believes that they are too high especially given that we are emerging from a once-in-a-century pandemic.

Finally, while the national average price of gasoline is $3.32, in many states it is significantly less than that. The national average incorporates states where, for geographic and state-specific reasons, gasoline prices have historically been high. Americans in other states are paying much less at the pump.  Right now, twenty states have state-level averages below $3.15.  That puts those states below both the 10-year real average of $3.30 per gallon and also below the 20-year real average of $3.18 per gallon. That number is increasing week by week, with only 12 states below that threshold a month ago.