U.S. Energy Secretary: "Gasoline May Not Return Below $3 Until Next Year"

Chris Wright, U.S. Secretary of Energy, said on the 19th (local time) that gasoline prices in the United States are unlikely to fall below $3 per gallon until as late as the end of this year. This suggests it will take longer than U.S. Treasury Secretary Scott Bessent previously anticipated, who expected the drop to occur by this summer.

Appearing on CNN that day, Secretary Wright was asked when he expects gasoline prices in the U.S. to return to below $3 per gallon. He responded, "It could be by the end of this year, or it may not be possible until next year."

Secretary Wright stated, "There is a strong likelihood that gasoline prices have peaked and are now beginning to decline." He added, "Considering the rate of inflation, a price below $3 per gallon is quite remarkable," and emphasized, "We will certainly return to that level."

Chris Wright, U.S. Secretary of Energy. Photo by AP Yonhap News

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The rise in gasoline prices is creating political headwinds for the Trump Administration ahead of the midterm elections in November. The average price of gasoline in the United States remained in the $2.90 per gallon range until February of this year. However, following the U.S. and Israeli airstrikes on Iran, international oil prices surged, and gasoline prices have now climbed to around $4.10 per gallon.

He also explained that the U.S. reversed its previous position and extended the easing of sanctions on Russian oil because of strong requests from the Group of 20 (G20) countries to lower oil prices. The U.S. appears to have received such requests during the G20 Finance Ministers and Central Bank Governors Meeting held on the 16th.

Regarding the decision to change and extend the sanctions on Russian crude oil, Secretary Wright said, "The G20 meeting was held, and central bank governors from around the world appealed to us to lower energy prices, to help them, and to respond constructively."

He added, "In any case, all Russian crude oil is flowing into China, and what we are implementing is a temporary measure," explaining, "Instead of letting the oil go to China, the idea is to redirect it to other Asian refineries to lower energy prices in Asia and Europe."

When asked whether U.S. sanctions on Russian oil would eventually be restored, Secretary Wright replied, "Absolutely."

Previously, on the 15th, U.S. Treasury Secretary Scott Bessent announced that he would not extend a one-month waiver on sanctions against Russian crude oil that expired on the 11th. However, two days later, the U.S. Treasury reversed its decision and announced that it would allow the sale of Russian crude oil and petroleum products for one more month.

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