Gasoline prices in the US are expected to remain above $3 until 2027

US Energy Secretary Chris Wright expressed his belief that gasoline prices in the United States have already reached their highest levels, suggesting that they will begin to decline gradually, although they may remain above $3 a gallon until next year.

These statements came amid rising fuel prices as a result of geopolitical tensions related to the war with Iran, which has cast a shadow over the domestic political scene, especially with the approach of the midterm elections, where the Republican Party is seeking to maintain its slim majority in Congress.

Wright explained that prices falling below $3 could happen later this year, but he didn’t rule out delaying it until next year, stressing that prices have most likely peaked and that the general trend will be downward, especially with the end of the conflict.

In contrast, President Donald Trump’s administration offered varying estimates regarding the trajectory of prices, with Treasury Secretary Scott Bessent predicting that gasoline prices would fall to around $3 a gallon during the summer, while Wright suggested a longer timeframe for achieving that goal.

President Trump, however, indicated that high prices could persist until November, given the ongoing tensions.

Officials emphasized that the decline in gasoline prices would have a significant impact on inflation rates, given the direct link between energy and the cost of living and transportation.

Wright considered a drop in prices below $3 a major shift for the economy.

According to data from the American Automobile Association, the average price of a gallon of regular gasoline reached about $4.05, compared to $3.16 a year ago, reflecting the significant price increase witnessed recently.

Official statements reflect a state of cautious optimism, as the US administration is betting on the end of geopolitical tensions to begin a decline in fuel prices, while markets remain on the lookout for any developments that may affect the course of energy and inflation in the coming months.