Current prices for gasoline, diesel fuel and other petrochemical products are not based on the market. They are a failure of the market system and it’s time for progressives to talk about it.
As you know, U.S. gasoline prices increased by more than a dollar a gallon during March 2026, after Donald Trump started his war against Iran. Diesel prices have soared from roughly $3.65 to more than $5 per gallon. And jet fuel prices have doubled.
But we must understand, the United States is a net exporter of petroleum. We export more than we import; we are energy self-reliant. Of the small amount of oil that the U.S. imports, it comes overwhelmingly from Canada, with Mexico in a distant second place. Less than one percent of our meager petroleum imports are from Persian Gulf countries and only a fraction of that comes through the Strait of Hormuz.
In other words, the closing of the Strait has virtually no impact on our nation’s oil supply or the price of producing petroleum. So, why are our prices skyrocketing?
It is greed, profiteering, windfall profits, price gouging—all of the above. The gasoline we now buy for $4/gallon costs the same to produce and transport as the gasoline we bought for $3/gallon one month ago. The oil companies are simply using the war in Iran as an excuse to jack up prices and pocket the difference.
If the “free market” worked, some sellers would happily list gasoline for $3.10 or $3.20, undercutting others while still making a hefty profit. But they’re not because price competition is not happening; the industry (mostly wholesalers rather than retailers) is engaged in a form of price fixing. They get richer and we get poorer.
Progressives need to talk about it! Right now, Americans are justifiably angry about the affordability of day-to-day life. People are losing ground. Shouldn’t this be today’s number one political issue?
Those of you who are policy wonks, (that is, most of our readers,) are probably thinking, it’s time to advocate for a windfall profits tax. That’s what U.S. Senator Sheldon Whitehouse believes and he introduced a bill on the subject, S.4111.
But we all know, and almost all Americans understand, that the bill is going nowhere in today’s political climate. Besides, our fellow citizens simply don’t want to hear about another tax, especially one they cannot comprehend.
So here is what you should do. Attack the oil companies and the system that makes average Americans pay for the mistakes of Donald Trump and those who support him. And if you want to talk about legislation, promise to introduce or support the Price Gouging Prohibition Act, which impowers states to prevent excessive prices that are not based on legitimate increased costs. Both the progressive base and persuadable Americans are begging you to be proactive and fight for them. This is your chance.