Washington, D.C. — President Donald Trump recently asserted that gasoline prices have plummeted below $2 per gallon, a claim aimed at persuading the Federal Reserve to reduce interest rates. In a post on his social media platform, Trump declared, “Gasoline just broke $1.98 a Gallon, lowest in years,” adding that consumers have awaited price reductions for years and suggesting that low inflation warranted a rate cut by the central bank.

Contrary to the president’s statement, the national average for gasoline stood at approximately $3.165 per gallon as of Monday, according to the American Automobile Association (AAA). This figure marks a nearly 2-cent increase from the previous week and falls more than a dollar above Trump’s claim.

GasBuddy, a leading fuel price tracking service, reported a similar upward trend, indicating an average cost of $3.12 per gallon, also reflecting a slight increase. This rise in gas prices represents the first uptick drivers have faced in about a month, though the average price remains 12 cents lower than it was last month and approximately 49.6 cents cheaper than a year ago.

While futures for RBOB gasoline briefly reached $1.98 per gallon last Thursday, this figure does not represent what consumers actually pay at the pump. Experts noted that RBOB data primarily reflects wholesale prices and excludes vital costs like taxes and transportation. Patrick De Haan, head of petroleum analysis at GasBuddy, emphasized that the reported prices do not accurately depict consumer expenses, stating, “It does not come anywhere near explaining what consumers are paying.”

When queried about the president’s comments regarding gasoline pricing, Trump administration officials pointed to the recent trends in RBOB prices, which do not accurately reflect retail costs. Analysts suggest that the differentiation between wholesale and retail prices is crucial for consumer understanding; for example, some stations in states like Texas and Tennessee posted prices around $2.20, but few consumers actually encounter prices below that threshold.

Looking ahead, De Haan mentioned the possibility of average prices dropping below $3 per gallon as refinery maintenance concludes and supply levels increase. He noted that current prices at the pump have not been this low since 2021, hinting at a potential for more favorable pricing for consumers in the near future.

A spokesperson for the White House, Taylor Rogers, highlighted that gas prices reached historic lows during Trump’s first term and are currently declining again, attributing this shift to the administration’s energy policies. These price reductions follow a significant decrease in crude oil prices, driven by a combination of economic recession concerns and increased supply from OPEC+ producers.

Rogers defended Trump’s economic strategies, asserting that “while some of the damage done by Bidenomics is still lingering, President Trump’s agenda is lowering prices for American families at lightning speed.”

As the economic landscape continues to shift, the divide between reported gas prices and consumer experiences raises questions about the accuracy of public statements and statistics, highlighting the complexities of the oil market and its impact on everyday Americans.