U.S. Gasoline Prices Fall 49 Cents a Gallon in Past Month

U.S. gasoline prices fell an average of 49 cents a gallon over the past month as expectations grew for an end to the war with Iran. The decline has not matched the pace of falling crude oil prices, prompting the president to direct the Justice Department to investigate whether consumers are being charged excessive amounts at the pump.

The president posted on social media early Wednesday that oil companies are not lowering pump prices in line with the lower prices they are paying for crude. Crude oil prices, tracked by the U.S. benchmark, fell 27 percent in the past month and stood at $70.45 a barrel on Wednesday.

Gasoline prices reflect multiple components.

Oil accounts for roughly 51 percent of the cost of a gallon, while federal and state taxes made up about 17 percent in 2025, refining costs and profits contributed 14 percent, and distribution and marketing added another 17 percent, according to government data.

Refineries purchase crude oil weeks or months in advance, and the refined product moves through pipelines, ships, trucks, and terminals before reaching stations. These steps create a lag between changes in crude prices and what drivers pay.

Gasoline prices typically rise in warmer months as refineries switch to summer-blend fuel and demand increases ahead of holidays. A spokesperson for the American Petroleum Institute said the industry shares the goal of delivering relief at the pump.

The group noted that gasoline prices do not move in lockstep with crude oil, especially during global supply disruptions. Even after recent declines, the national average price for regular gasoline stood at $3.93 a gallon on Wednesday, about 32 percent higher than before the war began.