U.S. Energy Secretary Chris Wright stated on September 6, 2026, that gasoline prices are more likely to decrease than increase in the coming weeks, citing declining demand after the summer driving season and increased supply due to regulatory changes. The national average gas price stood at $4.147 per gallon as of Labor Day weekend, according to AAA, marking a record high for the holiday.
Wright’s remarks came during interviews on CNN’s State of the Union and CBS’s Face the Nation, where he emphasized that the Trump administration’s recent regulatory adjustments—allowing refiners to produce more gasoline and diesel with existing equipment—would boost supply. He also noted that demand typically declines after Labor Day, the unofficial end of the summer travel season.
Diesel prices, which reached a record $5.85 per gallon on September 5, were also addressed. Wright attributed high diesel costs to global refining capacity constraints, particularly due to damage to Russian refineries following the Ukraine war. He did not commit to specific policy actions, such as an export ban, but reiterated that the administration aims to keep energy flowing.
Key Developments in Wright’s Statements
1. Futures Market and Policy-Driven Supply Increase
Wright referenced gasoline futures markets, which he said were pricing fuel 30 cents per gallon lower for delivery in two months. He attributed this to regulatory changes implemented by the administration, which relaxed blending requirements for refiners. These adjustments were framed as a way to increase gasoline production without new infrastructure.
2. Demand Decline Post-Labor Day
Wright predicted that falling demand—driven by the end of peak summer travel—would contribute to lower prices. He also highlighted that some states, primarily led by Democrats, had not adopted the new federal blending standards, which he suggested could keep prices elevated in those regions.
Context and Broader Implications
Regulatory Changes and State Responses
The Trump administration’s policy shift allows refiners to produce more gasoline and diesel using existing facilities, a move Wright argued would increase supply. However, Democratic-led states, including New York, Connecticut, and California, have not adopted these new standards, which Wright suggested could limit price reductions in those areas.
Global Factors Affecting Diesel Prices
Wright cited global refining capacity issues, particularly the damage to Russian refineries following the Ukraine war, as a key driver of high diesel prices. He noted that Russia, once a major diesel exporter, now imports gasoline and has no diesel exports, contributing to tight global supplies.
Historical Gas Price Trends
The national average gas price of $4.147 per gallon on Labor Day 2026 represents a record high for the holiday, surpassing the previous peak of $3.82 in 2012. A year prior, the average was $3.19 per gallon, reflecting a sharp increase over the past 12 months.
Reactions and Perspectives
Criticism of Administration’s Energy Policies
While Wright framed the regulatory changes as a solution to high prices, critics—particularly from Democratic-led states—have argued that the policy favors fossil fuel production over long-term sustainability. Some analysts suggest that state-level resistance to the new standards could undermine the administration’s price relief efforts.
Focus on Global Energy Markets
Wright’s emphasis on global refining constraints highlights the interconnected nature of energy markets, where conflicts like the Russia-Ukraine war and sanctions on Iran continue to disrupt supply chains. His remarks suggest that domestic policy alone may not fully address price volatility without broader geopolitical stability.
What’s Next?
The administration’s regulatory adjustments are now in effect, but their impact on prices may take weeks to materialize. Diesel prices, tied to global refining capacity, remain a separate challenge with no immediate policy solution proposed. Wright did not provide a timeline for when prices might return to previous levels, stating only that a decline is more likely than an increase in the near term.