Trump Orders Justice Department to Probe Gasoline Prices Amid Political Pressure

President Donald Trump has directed the U.S. Department of Justice to investigate gasoline prices, alleging that major oil companies are not reducing pump prices in line with falling crude costs. In a Truth Social post, Trump criticized Exxon Mobil, Chevron, Shell, BP, and others, warning they could face consequences if they are “gouging” consumers. “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. “Gasoline prices better start going down a lot faster than what I’m seeing!”

As of June 24, the national average gasoline price stood at $3.93 per gallon, according to the American Automobile Association (AAA), exceeding the five-year seasonal average. Trump argued that prices should be closer to $2.25, citing increased crude supply from the Persian Gulf following a peace deal that reopened the Strait of Hormuz—a critical shipping route for about 20% of seaborne crude.

The lag in price declines stems partly from seasonal demand and refining constraints. “It has to do with the seasonality of gasoline prices which tend to be higher in the summer, and in general, there tends to be a lag of about 10 days or so between wholesale prices on Wall Street and retail prices at the pump,” said Daan Struyven, co-head of global commodities research at Goldman Sachs. Industry officials also pointed to lingering supply chain, refining, and inventory pressures, noting that U.S. gasoline inventories remain near the lowest levels for this time of year since 2014.

Trump’s move comes as high gasoline prices pose a political liability for Republicans ahead of the November midterm elections, with Democrats seizing on the issue to attack cost-of-living concerns. The president’s criticism mirrors past actions by former Presidents Joe Biden and Barack Obama, both of whom also accused oil companies of profiteering or market manipulation during periods of high fuel costs.

The American Petroleum Institute (API) defended the industry, stating, “Gasoline prices don’t move in lockstep with crude oil, especially during a major global disruption that is still affecting supply, refining and inventories.” The API emphasized its focus on market stability and meeting consumer energy needs.

Trump’s directive follows his administration’s close ties to the oil industry, which significantly funded his 2024 campaign and saw many of its policy priorities adopted.