National Gas Prices Drop as Trump Demands $2.50 Gallon Target

The national average price of gasoline fell to $3.71 per gallon by July 6, 2026, following a general decline across most U.S. states after the Independence Day holiday. In Michigan, average prices dropped below $4 per gallon for the first time since April, while Montana recorded its sixth consecutive week of declines. However, trends diverged locally, with prices increasing in Iowa and Chattanooga, Tennessee.

Donald Trump accused oil companies and retailers of price gouging, demanding that prices drop to $2.50 per gallon. In response to these concerns, the United States Department of Justice and the Federal Trade Commission urged state attorneys general to investigate pricing practices. This political pressure coincides with a rise in holiday demand to 9.13 million barrels a day, even as crude oil traded below $70 a barrel.

Despite the downward trend, petroleum analysts warn that global supplies remain tight. Patrick De Haan of GasBuddy noted that Ukrainian attacks on Russian refinery infrastructure forced Russia to shift from a fuel exporter to an importer. This disruption has put upward pressure on crack spreads, potentially limiting further significant price drops until the refining supply picture improves.