Trump accuses big oil companies of ‘gouging’ consumers as gasoline prices fail to match falling crude costs, orders DOJ

US President Donald Trump said on Wednesday (June 24) that he has directed the Department of Justice (DOJ) to investigate oil companies for allegedly failing to reduce gasoline prices in line with falling crude oil costs, accusing the industry of "gouging" consumers.

The directive comes as fuel prices remain elevated despite a sharp decline in global oil prices following an interim peace agreement between the United States and Iran.

'Gasoline prices better start going down'

In a post on Truth Social shortly after midnight, Trump expressed frustration that gasoline prices had not fallen as quickly as crude oil prices.

"Gasoline prices better start going down a lot faster than what I'm seeing!"

The President argued that the decline at the pump has been insufficient compared with the drop in oil prices over recent months.

Trump accuses oil firms of 'gouging'

Without naming specific companies, Trump accused major oil producers and refiners of failing to pass lower costs on to consumers.

"The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil. Those prices are dropping like a rock! In other words, customers are being 'gouged'."

Trump added: "I have instructed the DOJ to immediately start looking into this."

Neither the White House nor the Department of Justice immediately commented on the president's directive.

Fuel prices fall, but not as much as crude

The President's remarks came despite gasoline prices declining for six consecutive weeks amid easing tensions in the Middle East.

According to GasBuddy data, the average US gasoline price stood at $3.906 per gallon on Wednesday, down more than 14% from its peak in May.

However, crude oil prices have fallen much more sharply over the same period.

-Crude oil prices are down about 23% since their May highs.

-US crude prices have fallen roughly 40% from their March peak.

The decline followed an interim US-Iran peace deal 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 consumers are not receiving the full benefit of lower energy costs.

Political pressure ahead of midterms

The issue comes at a politically sensitive time for the White House.

Consumer concerns over fuel costs remain high as Trump and fellow Republicans seek to defend narrow congressional majorities in November's midterm elections.

Although prices have eased in recent weeks, motorists are still paying significantly more than earlier this year. The average US gasoline price remains well above the $2.764 per gallon recorded in January, before the Iran conflict disrupted energy markets.

Prices surged after Iran conflict

US gasoline prices climbed to their highest levels since 2022 after military strikes by the United States and Israel on Iran triggered 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, carrying roughly one-fifth of globally traded seaborne crude oil. The disruption raised fears of supply shortages and pushed fuel prices sharply higher across international markets.

Peace deal eases pressure

Market conditions improved after Washington and Tehran reached an interim peace agreement that helped restore shipping traffic through the Strait of Hormuz.

The reopening of the route contributed to a significant decline in crude oil prices, easing concerns about global supply disruptions.

Gasoline remains near $4 a gallon

The average retail price of gasoline stood at $3.93 per gallon on Wednesday, after slipping below the $4 mark earlier in June.

Although lower than recent highs, prices remain above the five-year seasonal average.

While supplies of both crude oil and refined fuels have improved in recent weeks, gasoline inventories remain unusually low.

According to US government data, commercial gasoline stockpiles held by refiners, wholesalers and fuel distributors are currently near their lowest seasonal levels since 2014.

Low inventories can keep prices elevated even when crude oil becomes cheaper, as suppliers seek to rebuild stocks and maintain adequate supply.