May 15, 2025 — Washington, D.C.
In a dramatic shift from trends seen in recent years, gasoline and oil prices are tumbling across the United States, with some regions now reporting prices at nearly half of what they were on the day President Joe Biden left office. The reversal comes on the heels of former President Donald Trump’s return to the White House for a second term, ushering in sweeping changes to energy policy and geopolitical strategy.
From Boom to Bust and Back Again
During Trump’s first term (2017–2021), the United States experienced a surge in domestic energy production. The administration’s aggressive deregulatory approach and expanded drilling incentives led to historically low gasoline prices, with the national average often hovering around $2 per gallon. The U.S. briefly became a net exporter of oil and natural gas, and the term “American energy independence” became a political catchphrase.
That dynamic shifted sharply under President Biden. Prioritizing climate change mitigation, the Biden administration curtailed domestic fossil fuel production through executive orders, leasing restrictions, and support for renewable alternatives. While supporters applauded the environmental emphasis, critics pointed to rapidly rising energy costs, supply chain disruptions, and surging inflation as direct consequences.
By mid-2022, average U.S. gasoline prices had climbed above $5 per gallon in some states, driven by both policy decisions and global factors such as the war in Ukraine. These price hikes strained household budgets and increased the cost of transporting goods—one of several drivers behind persistent inflation.
A New Energy Landscape in 2025
Since taking office in January 2025, President Trump has rapidly reversed many of his predecessor’s energy policies. Executive orders reopened federal lands to oil and gas drilling, streamlined permitting processes, and greenlit major pipeline projects previously stalled or canceled.
The response from the energy sector was swift. U.S. oil output surged to record levels by May, and gasoline prices began dropping accordingly. As of this week, the national average price for a gallon of regular unleaded gasoline stands at $2.39—down from $4.71 five months ago. In some Southern and Midwestern states, prices have dropped below $2 per gallon.
Economists note that this decline is not only easing pressure on consumers but also helping to lower transportation and manufacturing costs across industries. “Energy is the lifeblood of the economy,” said Dr. Laura Chen, an economist at the Heritage Foundation. “When fuel costs fall, virtually every sector benefits—especially food, shipping, and retail.”
Geopolitical Impacts: Strength at Home and Abroad
Trump’s assertive diplomacy is also being felt on the international stage. In a surprise visit to Saudi Arabia earlier this week, President Trump secured a new multi-nation agreement to increase oil output and stabilize prices. The deal includes cooperation from Gulf states and a tentative framework for easing tensions in the Red Sea corridor.
Analysts say the agreement not only boosts global supply but also undermines adversarial regimes that rely heavily on high oil revenues to fund aggression.
“Russia, Iran, and others use oil money to prop up their economies and fund military campaigns,” said former U.S. Ambassador to Israel David Friedman. “When energy prices fall, their ability to project power shrinks. This is economic deterrence in action.”
The economic and strategic benefits of lower oil prices are expected to continue in the months ahead. Inflation, which had remained stubborn through 2024, has already begun to decline, with the Consumer Price Index showing a 0.4% decrease in April—the first monthly drop in over two years.
The Road Ahead
While critics warn of environmental consequences and question the long-term viability of fossil fuel reliance, Trump supporters argue that renewed energy production is key to restoring economic stability and global strength.
“America is back in control of its energy future,” said the White House Press Secretary in a briefing Tuesday. “We’re putting American jobs, American security, and American families first.”
As oil rigs come back online and gas stations reflect lower prices, the political and economic narrative surrounding U.S. energy policy is once again shifting—with major implications for inflation, international stability, and everyday life.
James Thompson is an author and ghostwriter, and a political analyst.
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