US Energy Secretary concedes gas prices may stay above $3 until 2027

Wright's admission contradicts administration promises of rapid fuel cost relief; national average has reached $4 a gallon

By Indexa Editorial Team·Published 19 April 2026·Updated 27 April 2026

Briefing

Energy Secretary Chris Wright told CNN's State of the Union on Sunday that US gasoline prices may not fall below $3 a gallon until 2027, offering no firm timeline for relief. The national average has risen to $4 a gallon, squeezing household budgets and complicating the administration's energy cost narrative. Wright's 'I don't know' response represents a notable departure from earlier White House messaging on fuel prices.

Wright Offers No Timeline for Sub-$3 Gasoline

Energy Secretary Chris Wright acknowledged on Sunday that Americans may have to wait until 2027 before gasoline falls back below $3 a gallon, a concession that sits uncomfortably with the Trump administration's repeated promises to lower energy costs quickly.

Asked by CNN anchor Jake Tapper when it was realistic to expect sub-$3 fuel, Wright replied: "I don't know. That could happen later this year. That might not happen until next year." The national average price has since climbed to $4 a gallon, according to The Guardian.

The remarks are significant for two reasons. First, they implicitly validate the persistence of elevated pump prices at a time when inflation remains a live political concern. Second, they shift the administration's own goalposts: a cost-of-living argument that was central to the 2024 campaign now carries a timeline stretching well beyond the midterm election cycle.

Wright offered no explanation for what supply or demand conditions might bring prices lower, nor did he specify what policy levers the Department of Energy intends to deploy. The absence of a concrete mechanism leaves the forecast as little more than an acknowledgement of market reality.

Analysis

Wright's admission that sub-$3 gasoline may not arrive until 2027 embeds a sustained energy cost floor into consumer inflation expectations well past the 2026 midterms. With national average prices now at $4, the administration's cost-of-living narrative loses its most visible benchmark. This materially reduces the probability of a politically motivated SPR release or coordinated OPEC outreach producing consumer-visible relief before November 2026.
Sustained $3-plus gasoline embedded in May and June CPI prints removes any residual probability of Fed rate cuts in 2026. Wright's remarks operationalize the Iran war inflation shock identified by senior policymakers into a multi-year consumer price floor. The Fed cannot cut into a $4 national average with core services still elevated, and this timeline now extends the restrictive rate environment into 2027.
US airlines and trucking operators priced relief from any near-term energy cost normalization will face a structural margin headwind through at least 2027 per the administration's own framing. United and American, already absorbing mandatory O'Hare schedule cuts during peak season, now face a longer runway of elevated jet fuel costs with no policy mechanism identified to accelerate relief.

Connected Events

Economy · 2 months ago

Iran war economic fallout alarms policymakers, with poorest nations most exposed

Senior policymakers and central bankers warned that inflation will remain elevated regardless of near-term energy price moves, with at least one analyst projecting the US absorbs the inflationary shock for years. Wright's comments are the first official administration acknowledgment that aligns with that multi-year inflation thesis.

Regulation · 2 months ago

FAA orders O'Hare to cut over 300 daily flights this summer

The FAA's mandatory O'Hare flight cuts during peak summer travel season compound the fuel cost headwind Wright just extended. Airlines that cannot use scheduling flexibility to offset elevated fuel costs at their largest hubs face a simultaneous volume and cost squeeze with no near-term relief on either dimension.

Economy · 2 months ago

Carney suspends Canada's federal fuel excise tax after securing majority government

Canada's suspension of the federal fuel excise tax was framed as a cost-of-living response to the same elevated pump prices Wright now concedes will persist until 2027. The Canadian fiscal intervention implicitly highlights the absence of any equivalent US policy mechanism, making the political contrast between the two administrations sharper heading into the midterm cycle.

US Energy Secretary concedes gas prices may stay above $3 until 2027

Wright Offers No Timeline for Sub-$3 Gasoline

Analysis

Connected Events

Iran war economic fallout alarms policymakers, with poorest nations most exposed

FAA orders O'Hare to cut over 300 daily flights this summer

Carney suspends Canada's federal fuel excise tax after securing majority government

Further reading

Related Stories

UK Lords urge BoE and FCA to loosen stablecoin rules or risk ceding market to US and EU

Ledger audit finds chip flaw in Trezor Safe 7; Trezor says funds remain safe

Grayscale lists HYPG Hyperliquid ETF on Nasdaq with lowest U.S. Fee at 0.29%