Trump Says High Gas Prices Mean US Oil Firms Are Making a Freaking Fortune
Oil firms gain from disruption
Trump said Saturday that US oil companies were profiting while Americans faced higher fuel costs. He described oil prices as temporary, and said disruption to traffic through the Strait of Hormuz had redirected buyers toward firms operating in Texas, Oklahoma and Louisiana.
He said the US oil and gas business was generating hundreds of billions of dollars, adding that the country was making a “freaking fortune.” A report from the trade publication Oil & Gas Journal said disruptions tied to the strait had driven large gains for North American companies. The publication reported that 38 US producers and refiners together increased revenue by about $140 billion year over year.
Fuel costs climb for households
The gains in company revenue have not meant lower prices for consumers. AAA reported that regular gasoline averaged $4.29 a gallon, compared with $2.98 in February, a day before the US and Israel launched attacks on Iran.
Diesel has also risen sharply since the conflict began. AAA reported a price of $6.35 on Sunday, up from $3.75 the day before the conflict started. Shipping firms use diesel for boats and trucks, and higher fuel expenses are often reflected in prices paid by consumers.
Midterms shape fuel debate
On October 9, Trump said he had reached an agreement with Russian President Vladimir Putin to import Russian diesel. The fuel had faced heavy sanctions since Russia began its invasion of Ukraine.
Analysts cautioned that the move could support Russia’s economy as it seeks to bombard Ukraine during the winter. At the Georgia rally, Trump anticipated criticism that he was discussing company profits while people struggled with pump prices.
Key points
- Trump said US oil companies are benefiting from disruption in the Strait of Hormuz.
- AAA reported regular gas at $4.29 a gallon and diesel at $6.35.
- A trade publication reported about $140 billion in year-over-year revenue growth among 38 US producers and refiners.
- Trump said he had agreed with Vladimir Putin to import Russian diesel.