President Donald Trump said Saturday that the U.S. oil and gas industry is making hundreds of billions of dollars from high energy prices, even as American consumers pay $4.29 per gallon for regular gasoline.
At a campaign rally in Georgia, Trump stated that oil buyers diverted from the Strait of Hormuz have boosted revenues for U.S. producers in Texas, Oklahoma, and Louisiana. ‘We’re making a freaking fortune,’ he said, acknowledging advisers had cautioned against highlighting the gains.
Gas prices rise 44% since Iran conflict began
The average national gas price has climbed from $2.98 per gallon on October 7—one day before U.S. and Israeli strikes on Iran—to $4.29 as of Sunday, according to AAA. Diesel prices have surged from $3.75 to $6.35 over the same period, affecting shipping and transportation costs.
A Q2 report from the Oil & Gas Journal noted that surging crude prices tied to Strait of Hormuz disruptions contributed to massive windfalls for North American oil companies. A sample of 38 U.S. producers and refiners collectively grew revenues by about $140 billion year over year.
Trump defends remarks as advisers warned of backlash
Trump said his team advised against discussing the financial benefits of high oil prices, predicting criticism over rising fuel costs. ‘My people say, please don’t mention that, Sir, people are paying a little higher,’ he recounted. He added that he expected prices to fall but stood by his comments.
The remarks drew immediate online backlash. California Governor Gavin Newsom reposted footage of the rally with the caption: ‘Congratulations to Big Oil on their very successful, record-profits presidency.’
The White House did not respond to requests for comment. The president’s remarks come less than two weeks before midterm elections, as voters grapple with inflation and affordability concerns.