President Donald Trump has directed the Department of Justice to launch an immediate investigation into oil companies, accusing them of failing to pass along cost savings to consumers at the gas pump. The late-night instruction, posted on TruthSocial shortly after midnight Wednesday, alleged deliberate price gouging as crude costs plummet.
"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!"
Neither the White House nor the Department of Justice immediately confirmed that any such probe had been initiated.
The push comes as Trump seeks to highlight relief for consumers ahead of key election season contests. Gas prices have retreated sharply in recent weeks following geopolitical developments. A conflict with Iran and the subsequent closure of the Strait of Hormuz had sent energy markets reeling, driving pump prices higher and threatening Republican electoral prospects. Recent peace negotiations and an interim agreement to reopen the vital shipping corridor have eased that pressure considerably.
U.S. crude fell below $73.50 on Tuesday, a sharp drop from April's highs but still roughly $6 above pre-conflict levels. Oil prices extended Wednesday's declines as more tankers prepared to transit the reopened route, which normally carries roughly one-fifth of global oil supply.
National average gas prices have fallen to $3.93 per gallon, down from $4.52 a month earlier, according to AAA tracking data. That represents a decline of roughly 13 percent over the past month. Last week marked the first time prices dipped below $4 per gallon since March, offering consumers modest relief.
Yet the current price remains significantly higher than a year ago, when the national average stood at $3.22. For households filling up twice monthly, that gap translates to anywhere from under $20 to more than $300 in additional annual expenses, depending on driving patterns and tank size.
The price swings reflect broader uncertainty about whether the interim Iran agreement will hold as negotiations continue on final terms, including contentious issues around nuclear inspections and Iran's atomic program. Disputes over whether Tehran has consented to U.N. inspections of nuclear sites remained unresolved as of Tuesday.
Trump campaigned in Pennsylvania on Tuesday, a swing district critical to his political fortunes, arguing that current economic conditions represent improvement over the previous two years and that further relief is coming.
Author Sarah Mitchell: "Trump's move to weaponize gas prices against oil companies is pure electoral calculus, but the White House's sudden silence from Justice and the energy sector suggests this may be more theater than threat."
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