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The Money Desk · Blog
Re:

Why Are Gas Prices So High? Trump Blames Refineries

Trump reportedly blamed refinery problems, rather than the Strait of Hormuz, for high gasoline prices. EIA data put the U.S. average at $4.354 per gallon for the week of October 5, 2026.
From TheFinanceBase Team3 min to read
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Trump’s reported explanation for rising gasoline prices was that refinery problems—not the Strait of Hormuz—were driving them. But the latest official figures show the size of the price increase, not proof of that single cause: the U.S. average was $4.354 per gallon for the week of October 5, 2026, while EIA’s market analysis points to pressure from crude oil, refined-product supply and refinery margins.

What Trump said was driving gasoline prices

The Daily Beast reported on October 5, 2026, that Trump wrote on Truth Social that gasoline prices were no longer being driven by the Strait of Hormuz because, he claimed, record numbers of barrels were coming out almost daily. He instead pointed to refineries, citing Russian facilities struck by Ukraine and refineries closing in California.

The outlet printed his statement as: “What’s driving up Gasoline is no longer the Strait of Hormuz, because Record Numbers of Barrels are coming out now on an almost daily basis, but the word, ‘Refineries,’ where Russia’s are being blown up by Ukraine, and where ours are being closed up, in Blue States, like California, by the Dumocrats,” The Daily Beast’s report is the source for the wording; the original post was not independently located.

What gasoline cost in the latest EIA weekly data

The U.S. Energy Information Administration’s weekly series, published October 6, put regular gasoline at an average of $4.354 per gallon for the week of October 5. That was 11.1 cents below the previous week, but $1.230 above the same period a year earlier. These are weekly averages, not live prices at individual stations.

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Area Regular gasoline, per gallon Measure
United States $4.354 Weekly average, week of October 5, 2026
California $6.227 Weekly average, week of October 5, 2026
Texas $3.874 Weekly average, week of October 5, 2026

The state gap is substantial, but those figures alone do not show why prices differ or establish how much California refinery closures contributed to the national average. The Daily Beast rounded the national price to $4.37; EIA’s $4.354 is the more precise weekly benchmark. See the EIA weekly gasoline price series.

What EIA says about market pressures

EIA’s October 5 analysis described rising crude and petroleum-product prices in the third quarter of 2026 amid persistent conflict in the Middle East. Brent crude futures rose after military strikes resumed on July 7. Crude oil is a major input cost for gasoline, so changes in global oil markets can affect pump prices, alongside the cost and availability of refined products.

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Refineries were operating heavily, but margins were elevated

U.S. refineries averaged 95% utilization in the third quarter, processing more crude oil than in any third quarter since 2019—even though refining capacity was 4% higher in 2019. EIA also reported elevated refinery margins for gasoline and other fuels. Those facts show a market with strong refinery use and costly product margins; they do not establish that refinery closures in one state caused the national price level.

Several parts of the fuel market matter

  • Crude oil: Global supply expectations and geopolitical conflict influence the cost of feedstock used to make gasoline.
  • Refining: Refinery capacity, operations and margins affect how much gasoline is produced and the cost of turning crude into fuel.
  • Regional supply and distribution: Local availability and the movement of fuel can contribute to differences between state averages.
  • Local conditions: The spread between California and Texas prices shows that a national average does not describe what drivers pay everywhere.

EIA’s figures give context for a refinery-related explanation, but they do not quantify the national price effect of specific California closures or independently verify Trump’s claim about the volume of barrels moving through the Strait of Hormuz. A March 2026 CNN transcript quoted analyst Patrick De Haan discussing the strait and oil flows as central concerns at that earlier point; that dated comment does not establish October shipping conditions.

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What EIA expected prices to do next

In its October 2026 outlook, EIA forecast gasoline prices to be about the same in October as in September, then to decline gradually alongside crude oil prices. That was a forecast at the time of publication, not a guarantee or a report of what prices ultimately did. The EIA Short-Term Energy Outlook is updated regularly.

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