Photo: Andrew Harnik / Getty Images News / Getty Images
President Donald Trump has instructed the Department of Justice (DOJ) to investigate oil companies for alleged price gouging at the gas pump. In a late-night post on Truth Social, President Trump accused major oil companies of not reducing gasoline prices in line with falling crude oil costs. "The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil," he wrote, asserting that customers are being "gouged."
The president's directive comes as oil prices have declined due to ongoing peace talks between the United States and Iran. Brent crude recently fell below $77 per barrel, while U.S. West Texas Intermediate crude traded below $73 per barrel. Despite these declines, gasoline prices have not dropped as sharply. According to AAA, the national average price for a gallon of regular gasoline was about $3.93 on Wednesday (June 24), down from $4.52 a month earlier.
The American Petroleum Institute (API), representing major U.S. oil and gas companies, responded to President Trump's comments by stating that gasoline prices do not always move in lockstep with crude oil prices. API spokesperson Bethany Williams said, "Our focus remains on supporting market stability and delivering the energy consumers need."
This investigation comes amid concerns that increased gas prices could impact the upcoming midterm elections. While prices have eased recently, there is uncertainty about whether the interim agreement with Iran will hold, affecting oil flow through the Strait of Hormuz, a key trade route.
The DOJ has not yet provided details on what the investigation will entail, but President Trump has made it clear that he expects gasoline prices to decrease significantly and swiftly.