Energy Secretary Chris Wright said Tuesday that elevated energy prices will soon decline, citing a boost in U.S. production and efforts to restart idled refineries.
During an interview on Fox Business’s “Big Money in the Morning,” Wright said the Trump administration is “working with” producers to “restart” operations at closed fuel refineries and expand established operations.
“This is what capitalism’s all about. The markets are sending that price mechanism as well,” he added. “Prices are high. The best cure for high prices is high prices, it grows supply.”
Higher prices typically encourage producers to supply more energy, which in turn will drive prices down.
Gas and diesel prices have risen in the U.S. amid the Iran war, as the Islamic Republic’s restrictions on shipping in the Strait of Hormuz have hampered the energy industry.
Gas and diesel cost an average of $4.15 per gallon and about $6.29 per gallon, respectively, according to AAA.
Higher fuel prices pose a political problem for the GOP, as voters on Tuesday will determine which party controls Congress for the bulk of President Trump’s final two years in office.
Patrick De Haan, the head of petroleum analysis at GasBuddy, wrote Tuesday on the social platform X that the national average prices for gas and diesel set a “new election day record.”
But Wright had an optimistic view on Tuesday, saying exports of refined products out of the Persian Gulf are increasing.
The Energy chief also said energy production in India and the U.S. will rise, predicting prices will subsequently decline.
“Gasoline and diesel prices peaked in September, they’re on their way down, and they will continue down meaningfully in the months ahead,” he said.
The administration’s focus on boosting supply comes as energy prices fuel voter anxiety ahead of the midterms. Meanwhile, oil prices slid as Trump touted a win on Iran in his final midterm pitch. The political stakes are high, with five Senate races that could flip in Tuesday’s midterms.
