OAN Staff Brooke Mallory
12:06 PM – Friday, February 21, 2025
President Donald Trump said this week that he will be collaborating with Republicans in Congress to alleviate the pain that Americans are facing financially at the gas pump.
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According to AAA, the average nationwide gas price on Thursday was $3.16 per gallon, which was lower than the price of $3.27 in February 2024 but higher than $3.12 a month ago.
The president’s plan to reduce inflation has been hampered by the rising cost of energy, seasonal refinery maintenance, among other reasons. Trump, however, sees hope in providing incentives to businesses to continue manufacturing in the United States and collaborating with Republicans in Congress to reduce all taxes in order to slash gas prices, Daily Mail reported.
Trump stated that “100% expensing for new factory construction in the United States” will be one of the cutbacks during a conference held in Miami on Wednesday – hosted by Saudi Arabia’s sovereign wealth fund.
“As long as you invest in America, build in America, and hire in America, that means that I’m fighting for you,” the president said.
Although Trump did not offer details on any tax cuts he may extend to domestic oil and gas producers, he previously said that they will be a part of his upcoming tax plan as well.
“I’ll be working with the Republican Congress to pass the largest tax cuts in American history. We’re going to dramatically cut taxes for families and for workers and for companies, including no tax on tips and hopefully no tax on Social Security and no tax on overtime.”
According to some analysts, a boom in domestic manufacturing is the solution to cost reduction, and traditional supply and demand variables are required.
“Price is defined by supply and demand, unless stronger forces like government policies and control outweigh market forces,” stated Karl Brauer, executive analyst at the automobile marketplace iSeeCars.com.
“If the production of oil in the U.S. increases from more drilling and fewer restrictions, it will almost certainly mean a reduction in the cost of oil because the growing supply side of market forces will push prices down. This, in turn, could bring down the price of gas at the pump, as gas prices are largely determined by global crude oil prices.”
Additionally, Trump pledged to expand the Strategic Petroleum Reserve.
“The world runs on low-cost energy, and energy-producing nations like us have nothing to apologize for,” he said, noting that the U.S. has “more energy than any other nation in the world, and we’re going to use it.”
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