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President Donald Trump made a bold prediction about falling gas prices during his tour of Asia in October, while touting his “drill, baby, drill” slogan.
During a press conference in Tokyo covered by Fox News, Trump claimed that Americans are “going to see $2 gasoline pretty soon,” adding that the price drop would prove “the equivalent of something bigger than a tax cut (1).”
On Dec. 8, the White House announced that gas prices are falling, and have hit that $2 per gallon mark at some stations in four states: Kansas, Oklahoma, Texas and Colorado (2). On Dec. 18 this list was expanded to include Missouri, Tennessee and South Dakota, according to Rapid Response 47 — an official government account on X that shares White House updates (3).
The national average price for regular gas hasn’t dropped under $2 a gallon since May 2020, according to government data. Lowering gas prices was one of the President’s campaign promises.
However, most states are still hovering around the $3 mark, with the White House reporting that average gas prices have slipped below $3 per gallon in 40 states, under $2.75 per gallon in 24 states, and to less than $2.50 per gallon in nine states.
The news prompted a victory lap from the White House, though many experts largely credit the drop to increased production from OPEC+ nations.
“While some may be quick to assign political credit, the reality is that global supply dynamics — particularly OPEC’s production decisions — have been the primary force behind the relief drivers are seeing at the pump,” Patrick De Haan, GasBuddy’s head of petroleum analysis, said in an interview with CNN (4).
Downward-trending gas prices could mean significant relief for Americans struggling with the rising cost of living. But will they get low enough across every state to fulfill Trump’s promise?
Trump’s “drill baby drill” policy is not off to a great start. A Yale School of the Environment analysis noted that oil production is growing more slowly than it did under President Biden, while the number of oil rigs in the U.S. has actually fallen since Trump took office (5).
Energy Information Administration (EIA) numbers show that, at the time of Trump’s inauguration in January, the U.S. had 582 oil and natural gas rigs in operation. By August, that number had dropped to 538. While some, like Oil and Gas Watch, note that more oil is being drilled at fewer rigs, it comes at the cost of mass layoffs at major oil and gas companies as falling prices trim billions off their profits (6).
This comes as a new Deloitte report shows that 2026 U.S. oil and gas projects could face rising costs and even delays due to Trump’s ever-shifting tariff policy (7).
All of which could not only threaten the current price of gas, but leave Trump’s prediction of gas prices below $2 dissipating like car exhaust on the breeze.
Moreover, even if gas prices do fall, it may not have the impact as in the past. In 2015, when gas prices hit an average of $2.12 a gallon, JPMorgan found that “for every dollar less spent at the gas pump, individuals spent roughly 80 cents … on other things” including restaurants, electronics, entertainment and department stores (8).
However, September’s Consumer Price Index (CPI) showed overall energy prices jumped 2.8% year-over-year, with electricity up 5.1% and piped natural gas increasing a whopping 11.7% (9). Meanwhile, the EIA reports that household electricity prices have risen 13% since Donald Trump took office (10).
This suggests the boost to the economy that occurred in 2015 is unlikely to happen again.
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Even if you can’t rely on lowering gas prices to help you find some extra room in your budget, there are other ways to trim down your expenses. For example, if you find yourself tight on money, it can help to begin tracking your expenses, tighten your margins and start saving the excess.
A quick daily check-in of your accounts can show you exactly where your money is going.
An app like Rocket Money can easily flag recurring subscriptions, upcoming bills and unusual charges by pulling in transactions from all your linked accounts.
This can help you cut unnecessary costs, and then you can manually redirect savings straight into your retirement fund. No spreadsheets, no guesswork, no stress. Small habits like this can make a big difference over time.
Rocket Money’s intuitive app offers a variety of free and premium tools. Free features include subscription tracking, bill reminders and budgeting basics, while premium features — like automated savings, net worth tracking, customizable dashboards, and more — make it easier to stay on top of your retirement contributions and overall financial goals.
One of the easiest ways to find room in your budget is to look at how you spend money on food. If your take-out addiction is adding up to serious cash, there are ways to make grocery shopping cheaper. First of all, consider buying in bulk. Stocking up on non-perishable items can also help you to trim your overall costs, especially when the items are on sale.
You could also make a habit of perusing store flyers to find good deals and opt to shop seasonally for your produce to cut costs and get the freshest food.
When making a monthly budget, it can be easy to forget those yearly or quarterly expenses that pop up, like your insurance coverage. However, these big bills can seriously cut into your budget — unless you slash them down to size. Consider shopping around for better rates on your insurance, instead of sticking with the same insurer you’ve used for decades. It’s easier than you think.
One option would be OfficialHomeInsurance.com, which helps you look for low rates for free — and in as little as 2 minutes.
The platform makes it easy to compare offers tailored to your needs from a list of over 200 reputable insurance companies.
Simply fill in a bit of information, and you can quickly find home insurance coverage at the lowest cost for you. On average, OfficialHomeInsurance.com users save $482 a year.
While you’re saving money on home insurance, you might also want to take a look at whether you’re being gouged on your auto insurance rates.
OfficialCarInsurance.com can help you instantly sort through the best policies from car insurance providers in your area, including trusted names like Progressive, GEICO and Allstate.
With rates as low as $29 per month, depending on factors like the make and model of your car, you can find coverage that suits your needs, and potentially save you hundreds of dollars per year.
To get started, fill in your information and OfficialCarInsurance.com will provide a list of the top insurers in your area.
While tracking your routine expenses is a great first step, the reality is that your bills aren’t always predictable. Emergencies happen, which is why it’s so important to have an emergency fund stocked up with three to six months of your living expenses.
Older adults and parents of young families may also want to consider funding a Health Savings Account (HSA) for unexpected medical expenses. These tax-advantaged accounts can help you grow a healthy cushion for managing future medical debt, and can be rolled over into retirement funds if unused as you get older.
Of course, you don’t want to leave a significant amount of cash sitting in a regular checking account earning no interest. Parking your cash in an account that generates high interest can make your emergency fund stretch further while staying liquid.
Standard savings accounts often have interest rates less than 1%, meaning that you’re earning less than $1 per $100 you save. However, online banks can cut down on costs and pass those savings on to you. This can lead to high-yield accounts with interest rates of ten times the national deposit savings rate, up to 4.5%, depending on available promotions.
If you’re not sure where to start, you can check out some of Moneywise’s top picks for savings accounts to compare your options for free.
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Fox News (1); White House (2); @Rapidresponse47 (3); CNN (4); Yale School of the Environment (5); Oil and Gas Watch (6); Deloitte (7); JPMorgan (8); Federal Reserve Bank of St. Louis (9); Energy Information Administration (10)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
