President Donald Trump wants lower gas prices, and he's made it clear to oil companies that they should pass on the savings from cheaper crude. But according to GasBuddy analyst Patrick De Haan, it's not that simple.
In an interview with Yahoo Finance on Tuesday, De Haan acknowledged Trump's push is well-intentioned, noting that Americans have been dealing with high fuel costs since the war in Iran began. But he pointed out that the situation is more complicated than just the price of oil.
Oil prices were around $70 per barrel nearly 15 years ago, which led to a much lower national average for gas. But De Haan said that today, factors like gas taxes that have "gone up in virtually every state" and a "heat wave" that has impacted refinery production are keeping prices higher.
"You can have all the oil in the world, but if you don't have enough refineries, that's going to keep prices higher," De Haan said. He also highlighted that the movement of refined products through the Strait of Hormuz has been disrupted, and Ukraine's attacks on Russian refineries are a "wild card" that is "keeping refined product prices elevated."
"The President would love to see this magic ratio return, but that's probably not gonna happen any time soon," De Haan said. He added that gas stations are currently selling more expensive summer blends, and "demand is higher as well."
Trump's top economic advisor, Kevin Hassett, has said that gas prices will drop once regular traffic resumes through the Strait of Hormuz. However, Hassett warned that Iran will test Trump's "resolve" following the Memorandum of Understanding signed between Washington and Tehran.
On the other side, Sen. Ed Markey (D-Mass.) has been sharply critical of Trump, saying that the "reckless war with Iran" has driven up costs for Americans.
Meanwhile, Iran has refused direct talks with senior Trump administration officials, including U.S. envoy Steve Witkoff and the President's son-in-law Jared Kushner. Instead, they are communicating through Qatari mediators. This comes after the two sides exchanged missile strikes over the weekend, casting doubt on a fragile ceasefire agreement.
