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Trump promised to slash energy costs - but gasoline, diesel and jet fuel all soared instead
CNBC • • business
Key Points:
- President Donald Trump pledged during his 2024 re-election campaign to cut gas prices below $2 a gallon within his first year in office, but gas prices remain historically high ahead of the election, with national averages at $4.20 per gallon.
- Fuel prices surged due to geopolitical tensions, including Trump's joint attack on Iran, retaliatory strikes on oil tankers in the Strait of Hormuz, Houthi attacks on Saudi refineries, and ongoing conflict in Ukraine, complicating efforts to lower costs.
- Trump faced political pressure from Republicans, particularly in key farm states like Iowa, leading to measures such as allowing tax-exempt offroad diesel use on highways and an $8 billion relief program for farmers, but avoided a diesel export ban to prevent further gasoline price hikes.
- A controversial deal allowing Russian diesel exports was criticized by Ukraine and some U.S. senators, with analysts noting the volumes are insufficient to significantly affect global prices.
- Crude oil prices have risen sharply in October due to election-related uncertainties and potential post-election escalations, raising concerns about higher fuel costs during the Thanksgiving travel season.
