Trump Orders DOJ To Probe Oil Companies Over Gas Price Gouging

Trump Accuses Big Oil of Holding Back Price Relief

US President Donald Trump (@realDonaldTrump) has ordered the Department of Justice to launch an immediate investigation into major oil companies, accusing them of failing to pass falling crude costs on to consumers at the pump. Trump made the announcement in a post on Truth Social published after midnight on June 24.

"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, adding: "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 backdrop is a sharp divergence between wholesale and retail energy prices. US crude prices have fallen roughly 40% from their March peak, yet pump prices are down only around 14% over the same period. According to GasBuddy data, the average US gas price stands at $3.906 per gallon, still well above the $2.764 recorded in January. The gap is what Trump is pointing to as evidence of consumer gouging.

Market Context and Industry Pressure

Gas prices have been declining for six consecutive weeks, driven in part by easing tensions over the Strait of Hormuz and broader diplomatic progress between the US and Iran. As of Monday, the national average for a gallon of regular fell to $3.85, according to GasBuddy data cited by Reuters. Still, prices remain far above pre-conflict levels, with analysts noting that a full recovery could take considerably longer.

Experts point out that the lag between falling crude and cheaper pump prices is a known market phenomenon. "There is a saying that pump prices rise like a rocket and fall like a feather, and that holds," David Doherty, head of natural resources research at BloombergNEF, told Yahoo Finance. Other factors, including refining costs, distribution disruptions, and retailer markups, can slow the pass-through of lower crude to consumers.

Trump's call for a DOJ probe adds political pressure to major integrated oil companies such as Exxon Mobil and Chevron, as well as refiners including Marathon Petroleum, Phillips 66, and Valero. Analysts at TipRanks noted the move raises regulatory risk for these firms and could dampen investor sentiment around their profit margins in the near term.

Sources:
OilPrice.com: Trump Orders Gas Price Gouging Probe
CNBC: Oil extends decline as Trump accuses oil firms of gouging consumers
ABC News: Will gas prices keep falling? Experts weigh in