Trump: Think gas will be $2 a gallon shortly

Trump: Think gas will be $2 a gallon shortly

Title: Trump's Energy Policy: Potential Impact on Gas Prices

In his recent victory in the 2024 election, Donald Trump has promised to lower energy costs for Americans by loosening regulations around oil and gas drilling. According to Trump, this policy is expected to boost supply and drive down prices at the pump, potentially bringing gas prices below $2 per gallon [2].

The incoming administration has outlined plans to unwind regulations imposed by the previous administration, including restrictions on offshore drilling and federal lands. Trump's pick for Energy Secretary, Chris Wright, has stated that his first task will be to "unleash American energy at home and abroad to restore energy dominance" [2].

Analysts predict that oil prices are set to fall in 2025, with Goldman Sachs forecasting an average of $76 per barrel, JPMorgan predicting $73 per barrel, and Bank of America anticipating $65 per barrel [2]. These projections suggest that the downward pressure on oil prices could translate into lower gasoline prices for consumers.

Despite these predictions, analysts caution that reaching Trump's goal of $2 per gallon gasoline prices is unlikely. GasBuddy's Patrick De Haan notes that while prices are expected to trend lower, the impact on everyday Americans may not be as significant as promised [2].

The Energy Information Administration forecasts that drivers will pay an average of $3.20 per gallon in 2025, about $0.10 lower than in 2024 [2]. This follows an average retail drop of about $0.20 per gallon from 2023 to 2024, primarily due to lower crude oil prices and narrower refinery margins.

References:
[1] https://www.moomoo.com/news/post/54459452/record-tr4cking-news-tesla-broadcom-nvidia-tesla-lululemon-samsara-uipath-braze-biggest-stock
[2] https://www.aol.com/finance/trump-might-early-economic-win-143007079.html