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President Donald Trump said Wednesday he has directed the Department of Justice to investigate major oil companies over gasoline prices, accusing the industry of failing to pass lower crude oil costs on to American consumers.
In a post on Truth Social, the president argued that gasoline prices have not declined as quickly as oil prices following the U.S.-Iran peace agreement reached last week.
“The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil,” he 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!” he added.
The comments come as crude oil prices have fallen sharply since the United States and Iran signed a memorandum of understanding that ended months of conflict and reopened the Strait of Hormuz, a critical shipping route for global energy supplies. Benchmark oil prices have declined substantially from their wartime highs, while average U.S. gasoline prices have also fallen, though more slowly.
“Iran has informed the U.S. that, despite troublemaking Fake News reporting to the contrary, there are ‘NO TOLLS, NO INSURANCE COSTS, & NO OTHER CHARGES OF ANY KIND BEING SOUGHT OR RECEIVED BY IRAN ON SHIPS TRAVELING THE STRAIT OF HORMUZ. If this is false information, negotiations would end, immediately!’” the president wrote in another post on Wednesday.
Industry analysts note that changes in crude oil prices typically take several weeks to be fully reflected at the pump because of refining costs, transportation expenses, wholesale contracts, taxes, and retail pricing dynamics.
The administration’s criticism comes as Republicans prepare for the November midterm elections, with gasoline prices remaining above pre-war levels despite recent declines.
The Department of Justice has not announced any formal investigation, identified potential legal violations, or provided a timeline for possible enforcement actions.