President Donald Trump announced on Wednesday that he has ordered the Department of Justice to investigate oil companies for failing to reduce gasoline pump prices in line with declining crude oil costs, accusing the firms of gouging consumers.
In a social media post on Truth Social late Tuesday night, Trump did not name specific companies. The White House and the Justice Department did not respond to requests for comment outside regular business hours.
Gasoline Prices Fall but Not Enough, Says Trump
Data earlier this week showed that gasoline prices in the United States have dropped for six consecutive weeks, a trend attributed to easing diplomatic tensions between the US and Iran. However, Trump argued that the decline at the pump is insufficient and disproportionate to the drop in crude oil prices.
“Gasoline prices better start going down a lot faster than what I’m seeing!” Trump wrote. He added, “The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil. Those prices are dropping like a rock! In other words, customers are being ‘gouged.’”
Consumer Concerns Ahead of Midterm Elections
Trump’s latest post comes amid growing consumer anxiety over high gasoline prices, as the president and fellow Republicans strive to maintain slim majorities in Congress during the November midterm elections. The issue of pump prices has become a political flashpoint, with voters feeling the pinch at the fuel station.
According to GasBuddy data, the average US gasoline price early Wednesday stood at $3.906 per gallon, a drop of more than 14 percent from the peak recorded in May. In contrast, crude oil prices have fallen 23 percent over the same period, boosted by an interim peace deal between the US and Iran and the reopening of the Strait of Hormuz. Before the conflict, the strait handled about one-fifth of the global oil supply. From their March peak, US crude prices have plunged roughly 40 percent.
Pump Prices Still Elevated Compared to Pre-Conflict Levels
Despite the recent declines, gasoline prices remain significantly higher than the $2.764 per gallon recorded in January, more than a month before the Iran conflict began. Trump’s directive to the DOJ signals his administration’s intent to address what he sees as unfair pricing practices by oil companies.
“I have instructed the DOJ to immediately start looking into this,” Trump stated, emphasizing that the investigation should focus on whether oil companies are exploiting consumers by keeping prices artificially high.
