Trump Orders DOJ Probe of Oil Firms, Alleges Pump Price ‘Gouging’
President Donald Trump directed the Department of Justice on Wednesday to examine whether major oil companies are unfairly keeping gasoline prices elevated despite a sharp decline in crude oil costs following the recent U.S.-Iran peace agreement.
The move comes as gasoline prices, while significantly lower than their spring highs, remain well above levels seen before the conflict with Iran began. Trump argued that consumers are not receiving the full benefit of falling oil prices and accused the industry of failing to pass savings on to drivers.
In a post published early Wednesday on Truth Social, Trump expressed frustration that gasoline prices have not dropped more rapidly in response to the decline in global oil markets.
“The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil,” Trump wrote.
“Those prices are dropping like a rock! In other words, customers are being ‘gouged.’ I have instructed the DOJ to immediately start looking into this. Gasoline prices better start going down a lot faster than what I’m seeing!”
The president did not identify any specific companies in his remarks.
National average gasoline prices currently stand at approximately $3.91 per gallon. While that figure is substantially below the highs reached during the conflict with Iran, it remains roughly $1.14 higher than the average price recorded in January, before American military operations began.
Market data show that gasoline prices have been falling steadily for six consecutive weeks. According to figures compiled by GasBuddy, average pump prices have dropped more than 14 percent since reaching their peak in May.
Crude oil, however, has fallen much more sharply over the same period. U.S. benchmark crude has declined about 23 percent in recent weeks and is down roughly 40 percent from the highs reached earlier this year.
Trading on Wednesday reflected that continued weakness. Brent crude for August delivery slipped 0.91 percent to $76.38 per barrel, while West Texas Intermediate declined 0.94 percent to $72.52 per barrel.
Oil markets have been retreating rapidly since President Trump and Iranian President Masoud Pezeshkian signed a 14-point memorandum of understanding in Versailles last week. The agreement formally ended the war that erupted on Feb. 28 and reopened the Strait of Hormuz to international shipping.
The accord extended the existing ceasefire for an additional 60 days, ended the American naval blockade, authorized renewed Iranian oil exports, and launched negotiations regarding Tehran’s nuclear program. Prior to the conflict, nearly 20 percent of all seaborne oil shipments passed through the strategically vital waterway.
During the war, energy markets reacted dramatically. West Texas Intermediate surged to $119.47 per barrel on March 9, while Brent crude climbed to $126.41 on April 30, its highest level in more than four years. The spike came amid Iranian mining operations in the Strait of Hormuz and the U.S. blockade of Iranian ports.
Gasoline prices followed suit, climbing above $4.50 per gallon during the Memorial Day holiday period, according to AAA tracking data.
Energy experts caution, however, that fluctuations in crude oil prices do not immediately translate into lower prices at gas stations.
Karen Young, a senior research scholar at Columbia University’s Center on Global Energy Policy, characterized Trump’s comments as “political theater” during an interview with CNBC. She noted that refining costs, transportation expenses, taxes, and other factors all affect how quickly changes in crude markets are reflected at the pump.
Research cited by Fortune suggests that only about 13 percent of a decline in crude prices is typically passed on to consumers within a week, with roughly half of the savings eventually reaching motorists over a longer period.
The issue carries significant political implications as Republicans prepare for November’s midterm elections. Although prices have retreated from their wartime highs, gasoline remains approximately 41 percent more expensive than it was before the conflict began.
Trump’s directive also places new scrutiny on an industry that he frequently courted during the campaign, potentially signaling a tougher federal antitrust posture toward major energy companies.
As of Wednesday evening, the Department of Justice had not announced any formal investigative actions, legal theories, or timetable related to the president’s request.
{Matzav.com}
