President Trump has taken multiple actions in recent weeks to address elevated gasoline prices, which have become a significant political concern as midterm elections approach. The average U.S. gas price stood around $4.11 per gallon on Thursday, representing a more than 90 percent increase from the previous year. These efforts follow the breakdown of a ceasefire with Iran over two months ago, which disrupted global oil markets. The administration has summoned refinery operators to the White House for discussions on reducing pump prices, though no concrete agreements were announced publicly.
The core issue underlying persistent high prices is insufficient refining capacity to process available crude oil supplies. Multiple refineries in the Middle East have ceased operations due to regional conflict, while Russian diesel production facilities have been damaged by Ukrainian drone strikes. The remaining refining operations in North America and China lack the capacity to compensate for these losses. This constraint has created what analysts describe as a “haywire” market for refined products, with the price difference between crude oil and refined fuels reaching historic highs of over $70 per barrel, allowing oil companies to generate substantial profits.
To expand crude supplies, the administration has pivoted toward Venezuela, where it supported the capture of former leader Nicolas Maduro in January. The Pentagon announced plans to acquire a stake in North American Blue Energy Partners, a private company controlling approximately 20 percent of Venezuela’s oil reserves. Simultaneously, Chevron announced it would double production in Venezuela following an agreement with the interim government. Legal experts in Caracas expressed cautious optimism about the sector’s revival, though questions remain about the constitutional legitimacy of resource concessions to the United States.
Even with these initiatives, analysts project minimal impact on consumer gas prices before the midterms or beyond. Venezuelan heavy crude requires specialized refining capacity that is already operating at maximum levels to capitalize on current high prices. Meaningful production increases would require six to twelve months, with full resource development potentially spanning years. The administration’s secondary measure—ending summer ethanol blending requirements and exempting dozens of refineries from renewable fuel standards—may provide marginal relief but is unlikely to deliver noticeable savings for most consumers.
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