President Donald Trump has ordered the Department of Justice to investigate major oil companies over allegations they are failing to pass falling crude oil prices on to American drivers.
In a Truth Social post late Tuesday, Trump accused the industry of keeping gasoline prices artificially high even as oil markets have plunged following last week’s U.S.-Iran peace agreement.
“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.”
Trump did not identify any specific companies, nor has the Justice Department publicly announced details of any investigation.
Oil Prices Have Fallen Faster Than Gasoline
Trump’s criticism comes as oil prices have retreated in the wake of a tentative U.S.-Iran ceasefire and an emerging diplomatic framework that has led to the preliminary reopening of the Strait of Hormuz.
On Wednesday morning:
- Brent crude traded near $76 per barrel.
- West Texas Intermediate (WTI) traded around $72.50 per barrel.
Both benchmarks have fallen more than 20% from recent wartime highs as fears of prolonged supply disruptions eased.
Gasoline prices have also declined—but much more slowly.
According to GasBuddy, the national average has fallen for roughly six consecutive weeks to approximately $3.91 per gallon, down more than 50 cents from the Memorial Day peak but still well above pre-war levels.
AAA similarly reports the national average remains just under $3.92 per gallon, reflecting a substantial decline from May highs above $4.50 but still leaving motorists paying significantly more than they were before oil prices began retreating.
Why Haven’t Pump Prices Fallen Faster?
Energy analysts say the answer is more complicated than simply comparing crude oil prices with gas station signs.
Gasoline prices typically lag oil because refiners and retailers sell fuel purchased weeks earlier at higher costs. Taxes, refining expenses, transportation, wholesale contracts and local competition also influence retail prices.
Karen Young, senior research scholar at Columbia University’s Center on Global Energy Policy, told CNBC that Trump’s comments amount to “political theater,” noting that multiple costs separate a barrel of crude from the price consumers ultimately pay at the pump.
Research cited by Fortune estimates that only about 13% of a crude price decline typically reaches consumers within the first week, while roughly half is eventually passed through over a longer period.
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