Topline
President Donald Trump falsely claimed Wednesday that gasoline prices have fallen to their lowest point in 20 years, contradicting data from multiple sources showing current costs are above what they were in 2005.
Key Facts
Trump, who spoke at the America Business Forum in Miami, said “gasoline prices have plummeted to the lowest in two decades.”
The national average for gas prices is nearly $3.10 per gallon as of Wednesday, according to GasBuddy data, just above the level it was at last year.
Patrick De Haan, head of petroleum analysis at GasBuddy, said in a tweet the average price of gas Wednesday “would need to decline below $3 to $2.96 on average to fall to its lowest level since 2021.”
GasBuddy data also showed Wednesday’s national average gas price of $3.10 per gallon is above average prices in November 2005.
Data from the Energy Information Administration, an agency within the Department of Energy, shows the average retail price for all gas grades and formulations reached $3.15 in November, well above the national average of about $2.42 in November 2005.
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Tangent
Trump also said the U.S. will “soon see $2 gasoline,” a vow he has repeatedly made in recent weeks. De Haan told MarketWatch in October there are “extremely low odds—perhaps one in a million—of falling below $2.”
Where Are Gas Prices Cheapest—and Most Expensive?
Mississippi has the cheapest fuel in the U.S., according to AAA, with average prices for regular gas coming in at $2.60 per gallon. Meanwhile, California has the most expensive gas prices in the country, reaching $4.67 per gallon.
Key Background
National gas prices reached their lowest point of Trump’s second term in October, dipping below the $3 mark for the first time since last December. GasBuddy attributed the slide in price to a decision by the Organization of the Petroleum Exporting Countries (OPEC) to increase oil production, a shift from the organization’s production cuts in 2023. Gas prices have gone up about 10 cents since falling below $3 per gallon last month. Crude oil prices were “relatively low” in October due to higher supply and lower demand, AAA said in a report, noting gas prices could fall or stay low during Thanksgiving travel.
Further Reading
Average Gas Prices Fall Below $3—Here’s Why They Could Drop Further (Forbes)
