U.S. Treasury Secretary Scott Bessent on Tuesday urged gasoline retailers to shave prices ahead of the country's 250th birthday, echoing a directive from President Donald Trump and delivering a pointed reminder that authorities are watching how firms respond.
Speaking in television interviews, Bessent singled out both major oil-owned outlets and independent and international convenience chains, calling on them to act responsibly as the nation prepares to mark the July 4 holiday.
"I would encourage all the gasoline retailers, some of them are owned by Big Oil, some are independent, some are international convenience chains," Bessent said in an interview with Fox News. "I would encourage them to be good actors, especially in the 250th anniversary, because we're watching."
The Treasury secretary reiterated a threat issued by the president a day earlier, when Mr. Trump told gas stations to lower pump prices immediately or face unspecified consequences. In a social media post, the president wrote: "If Retailers don’t do this, big problems lie ahead! Start targeting around the $2.50 a Gallon number,"
Saturday marks the 250th anniversary of the founding of the United States, observed as the July 4 holiday. Bessent and the White House have framed the pricing appeal around that milestone.
Energy markets have been volatile this year. Oil prices climbed after strikes by the United States and Israel on Iran in late February and when Iran responded with its own attacks on Israel and Gulf states that host U.S. bases. More recently, global oil benchmarks eased following the signing of an initial agreement this month.
Bessent said the administration expects gasoline prices to decline in line with the drop in global oil costs and warned retailers that officials will hold them to account if pump prices do not follow. "We're going to hold them accountable on the other side," he said in an interview with "Fox and Friends."
High gasoline prices have become a consumer concern, and the issue has political implications as the president and fellow Republicans work to maintain narrow majorities in Congress ahead of November's elections.
Key points
- Bessent called on gasoline retailers - including Big Oil-owned outlets, independents and international convenience chains - to lower prices for the country's 250th anniversary.
- The Treasury secretary repeated President Trump's public warning to stations to cut prices or face "big problems."
- Recent oil market volatility, driven by strikes and retaliatory attacks earlier this year and eased by a recent initial agreement, is expected by the administration to translate into lower pump prices.
Risks and uncertainties
- It is uncertain whether gasoline retailers will reduce pump prices in response to the administration's public pressure - a matter affecting the energy and consumer discretionary sectors.
- Oil market developments remain a risk; past spikes tied to military strikes and retaliatory actions show that disruptions can quickly raise global prices, with implications for energy and transportation markets.
- Political stakes are high, as consumer concerns over fuel costs intersect with the president's and Republicans' efforts to defend narrow congressional majorities ahead of November elections.