Scott Bessent, the US Treasury Secretary, has issued a veiled warning to oil and gas companies to lower their prices, stating that the administration is 'watching' their actions. Speaking to Fox News on Tuesday, Bessent said he would encourage retailers to be 'good actors' especially as the country approaches its 250th anniversary.
The warning follows a social media tirade from former President Donald Trump, who demanded that gasoline retailers drop prices immediately, claiming that oil at $68 a barrel should translate to cheaper fuel. Trump wrote on Truth Social that if retailers did not comply, 'big problems lie ahead'.
Bessent suggested that oil companies are making 'record profits' and that it is 'time to do something for the American people'. His comments come after the US and Iran signed a memorandum of understanding to end the conflict, though recent clashes have threatened the peace deal. Brent crude is currently only $1 more expensive than before the conflict began, heading for its biggest quarterly loss since 2020.
Despite the drop in oil prices, the national average for a gallon of gas stands at $3.85, cheaper than a month ago but higher than last year's Fourth of July holiday. The administration has invoked the upcoming 250th anniversary celebrations, with Trump ordering renovations in Washington.
AAA has forecast a record 72 million people travelling over the holiday weekend, despite higher petrol prices compared with last year. Domestic car rentals are 10% more expensive, and round-trip flights average $830 a ticket. The number of drivers and flyers remains flat, while cruises have gained popularity.
