President Donald Trump has ordered the Department of Justice to investigate gasoline prices, stating that they are not falling quickly enough. In a post on Truth Social, Trump criticized "the big Oil Companies" for not lowering their pump prices in proportion to the "sharply lower prices they are paying for Oil," adding, "Gasoline prices better start going down a lot faster than what I’m seeing!" This directive follows a period where crude oil prices have fallen significantly, particularly after a peace deal between the US and Iran led to increased traffic through the Strait of Hormuz.
While gasoline prices have seen a decline, they are still viewed by the administration as disproportionate to the drop in crude oil costs. For instance, the average price of gasoline in the U.S. was approximately $3.906 per gallon on Wednesday, a decrease of over 14% from its peak in May. In comparison, crude oil prices have fallen by 23% over the same period, with U.S. crude prices sinking about 40% from their peak in March. Before the conflict, gasoline prices were around $2.764 per gallon in January.
Trump's comments suggest concerns about potential "gouging" by oil companies. The move comes as consumers express worry over high gasoline prices, and with midterm elections approaching in November, the administration and Republicans are keen to address voter concerns. Neither the White House nor the Department of Justice has officially confirmed the initiation of an inquiry or provided further details on the instructions given. Brent crude, a global benchmark, dropped below $76 a barrel on Wednesday, down from nearly $120 a barrel in May, but still above the pre-conflict level of approximately $70 a barrel. Similarly, U.S. wholesale oil (WTI crude) dipped under $72 a barrel but remains higher than the around $60 a barrel before the war imposed disruptions.
