January 21, 2026
Finance

Transport Secretary Highlights Historic Low Gas Prices Amid Competing Political Narratives

Sean Duffy credits gas price reductions to Trump administration's policies as California Governor Gavin Newsom cites state measures and EV adoption for similar success

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Summary

Transport Secretary Sean Duffy has underscored the achievement of gas prices reaching their lowest level in five years, attributing this development to policies implemented under the Donald Trump administration. His statements come alongside data affirming the decline in nationwide gas prices, with additional commentary from California Governor Gavin Newsom, who has linked local price decreases to specific state legislation and advancements in electric vehicle adoption. The reports also include industry and government forecasts looking ahead to 2026 and beyond, projecting continued trends in oil production and fuel pricing.

Key Points

Transport Secretary Sean Duffy credits Trump administration policies for delivering the lowest gas prices in five years.
Department of Energy and American Automobile Association data confirm current U.S. average gasoline prices near $2.80 per gallon.
Energy Information Administration projects lower gas prices for 2026 and 2027 due to expected declines in crude oil costs.
California Governor Gavin Newsom cites state legislation on price gouging and fuel supply, along with EV adoption, as reasons for reduced gasoline prices locally.

Transport Secretary Sean Duffy recently articulated strong support for the current state of gasoline pricing across the United States, framing the reduction as a tangible outcome of policies enacted under former President Donald Trump's administration. On a social media platform identified as X, Duffy proclaimed that the Trump administration’s approach has reintroduced both choice and affordability to American consumers in the context of fuel costs.

Accompanying his statements, Duffy shared a video clip in which he emphasized that automakers currently avoid incurring "billions of dollars on taxes or carbon credits" that would otherwise be required to comply with stringent and, in his words, "unattainable" emissions standards. This policy environment, according to Duffy, facilitates more economical fuel options for drivers.

One of Duffy's notable remarks included a humorous comparison between two iterations of Donald Trump, referring to "Donald Trump 47" competing with "Donald Trump 45" over which leadership delivers the lowest gasoline prices. He underscored the significance of the current pricing by stating that gas prices have reached their lowest level in five years.

Data from the Department of Energy appears to validate this claim, reporting that average retail gasoline prices in the U.S. currently hover around $2.80 per gallon. Complementing this, statements issued by the White House cite figures from the American Automobile Association (AAA), which recorded a national average price of $2.819 per gallon as of January 8. The AAA's data further indicates a modest increase to $2.822 per gallon reported on the following Tuesday, suggesting relative stability at an affordable level compared to historical pricing norms.

Adding to the economic picture, the U.S. Energy Information Administration (EIA) released projections on the same day forecasting lower gasoline prices in the years 2026 and 2027. These expected reductions are attributed chiefly to anticipated declines in crude oil prices, which significantly influence gasoline retail costs.

In the energy sector, TotalEnergies SE, a major oil and gas firm listed on the NYSE with the ticker TTE, expressed optimism regarding production levels, anticipating a 5% year-over-year increase in oil and gas output during the fourth quarter. This production uptick could contribute to supply dynamics that help maintain or reduce fuel prices.

In a parallel development, California Governor Gavin Newsom, representing a Democratic administration, has also highlighted recent reductions in gasoline prices within the state as a policy success. His administration attributes part of this decrease to the implementation of two special legislative measures targeting price gouging and ensuring steady fuel supplies, which have purportedly shielded consumers from excessive price fluctuations.

Newsom further praised California’s progress in promoting zero-emission vehicles (ZEVs), noting that sales have reached 2.5 million units—significantly surpassing the state’s previous target of 1.5 million EVs by 2025. This advancement in electric vehicle adoption is positioned as a complementary strategy toward reducing gasoline consumption and managing fuel costs within California.

This comparative narrative between national and state-level policies reveals distinct approaches and outcomes regarding fuel prices and clean energy transitions. The Trump administration’s deregulatory stance is linked to lowered compliance costs for manufacturers and affordable gasoline, while California emphasizes regulatory measures and clean technology adoption to achieve similar ends.

The dialogue also touches on investment and market implications, as illustrated by recent analyses from Benzinga. Their Top Stocks report highlights a select group of companies showing strong value, momentum, and quality characteristics, some achieving significant gains despite challenging sectors. TotalEnergies SE appears within such discussions based on its recent performance and production projections.

In summary, the current landscape of gasoline pricing in the United States is shaped by a combination of federal deregulatory policies, state-level legislative initiatives, and evolving energy market conditions. Projections suggest potential further easing of prices by the mid-2020s, facilitated by increased production and shifting market dynamics.

Risks
  • Gasoline prices are influenced by crude oil market volatility, which may impact future price stability despite current projections.
  • Automakers face uncertainty regarding emissions regulations which have financial and production cost implications.
  • The effectiveness of legislative measures against price gouging and in securing fuel supply depends on enforcement and market conditions.
  • Electric vehicle adoption targets may face technological, market, or policy challenges that affect anticipated impacts on fuel consumption and prices.
Disclosure
Education only / not financial advice
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