Trump accuses major oil companies of ‘irritating’ consumers as gasoline prices fall short of falling oil prices, Justice Department orders | Today’s news
US President Donald Trump said on Wednesday (June 24) that he has ordered the Department of Justice (DOJ) to investigate oil companies for allegedly failing to cut gasoline prices in line with falling oil prices, accusing the industry of “blackmailing” consumers.
The directive comes as fuel prices remain elevated despite a sharp drop in global oil prices following an interim peace deal between the United States and Iran.
“Gasoline prices should start falling”
In a post on Truth Social shortly after midnight, Trump expressed frustration that gasoline prices have not fallen as quickly as oil prices.
“Gas prices are going to start going down a lot faster than what I’m seeing!”
The president argued that the drop at the pump was insufficient compared to the drop in oil prices in recent months.
Trump accuses oil companies of ‘gouging’
Without naming specific companies, Trump blamed major oil producers and refiners for failing to pass on lower costs to consumers.
“The big oil companies are not lowering their price at the pump commensurate with the significantly lower prices they are paying for oil. These prices are dropping like a rock! In other words, customers are getting ripped off.”
Trump added: “I have directed the Department of Justice to begin looking into this immediately.”
Neither the White House nor the Justice Department had an immediate comment on the president’s directive.
Fuel prices are falling, but not as much as oil
The president’s remarks came despite gasoline prices falling for six straight weeks amid easing tensions in the Middle East.
The average price of gasoline in the U.S. was $3.906 a gallon on Wednesday, down more than 14% from May, according to GasBuddy data.
However, oil prices fell much more significantly over the same period.
-Oil prices are down 23% from May highs.
-U.S. oil prices are down roughly 40% from their March peak.
The decline followed an interim peace deal between the US and Iran and the reopening of the Strait of Hormuz, a critical route for global energy supplies.
Trump argued that the gap between falling oil prices and retail fuel prices suggests that consumers are not getting the full benefit of lower energy costs.
Read also | Trump criticizes Congress for passing war powers resolution to end war in Iran
Political pressure ahead of the mid-term period
The issue comes at a politically sensitive time for the White House.
Consumer concerns about fuel costs remain high as Trump and other Republicans try to defend a narrow majority in Congress in November’s midterm elections.
Although prices have fallen in recent weeks, motorists are still paying significantly more than at the beginning of this year. The average price of gasoline in the US remains well above the $2.764 a gallon recorded in January, before the Iran conflict disrupted energy markets.
Read also | Trump shot down Vance’s proposal to send Indian troops to Ukraine
Prices rose after the Iran conflict
U.S. gasoline prices climbed to their highest level since 2022 after military strikes by the United States and Israel on Iran sparked a regional crisis and led to the closure of the Strait of Hormuz.
The waterway is one of the world’s most important energy routes, transporting roughly one-fifth of the world’s traded marine oil. The disruption raised fears of supply shortages and sharply increased fuel prices in international markets.
The peace deal eases the pressure
Market conditions improved after Washington and Tehran reached an interim peace deal that helped restore shipping through the Strait of Hormuz.
The reopening of the route contributed to a significant drop in oil prices and eased fears of global supply disruptions.
Gas remains around $4 a gallon
The average retail price of gasoline was $3.93 a gallon on Wednesday after falling below $4 in June.
While prices are down from recent highs, they remain above the five-year seasonal average.
While inventories of both crude and refined fuels have improved in recent weeks, gasoline inventories remain unusually low.
Commercial gasoline inventories held by refiners, wholesalers and fuel distributors are currently near their lowest seasonal level since 2014, according to U.S. government data.
Low inventories may keep prices elevated even if oil falls in price as suppliers struggle to rebuild inventories and maintain adequate supplies.
Read also | Oil nears four-month low; can prices drop below $50?
