President Donald Trump announced Wednesday that he has ordered the Department of Justice to investigate major energy companies, accusing them of "gouging" customers by failing to lower gasoline prices in line with decreased wholesale oil costs.
Trump stated on social media that he had expected to see a more rapid reduction in petrol prices, noting that wholesale oil costs have fallen significantly. He did not specify which companies were involved in his remarks. The president's comments come as global oil prices have dropped from peaks seen during the recent US-Israel conflict but remain higher than pre-conflict levels.
"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.'"
The American Petroleum Institute (API), a trade association representing the oil and gas industry, responded that gasoline prices "don't move in lockstep with crude oil." Bethany Williams, an API spokesperson, added that the industry shares the goal of providing relief at the pump and stabilizing energy markets, noting that the ongoing conflict continues to affect supply, refining, and inventories.
Wholesale oil prices, including Brent crude and WTI crude, have fallen below $74 and $70 a barrel respectively on Wednesday, down from highs near $120 and above $80 during the peak of the US-Israel war with Iran. However, these prices are still above the roughly $70 and $60 marks recorded before the conflict began. In the US, the average price for regular gasoline has decreased to about $3.93 a gallon, down from a high of over $4 a gallon in April, though still elevated compared to pre-war levels.
Similar accusations were made against UK oil firms following the start of the Iran conflict. However, a UK competition regulator stated in May that there was no widespread evidence of price gouging, with average profit margins remaining broadly unchanged during the period in question.