U.S. President Donald Trump has directed the Department of Justice (DOJ) to investigate major oil companies over what he described as a slow response in reducing gasoline prices despite a sharp decline in crude oil costs.
Trump’s remarks came as crude oil prices dropped below $70 per barrel for the first time since early March, prompting renewed scrutiny of fuel pricing across the United States.
According to the president, consumers are not benefiting from the falling cost of crude oil as quickly as expected at fuel stations.
“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!,” Trump wrote on Truth Social. “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!”
Trump did not identify any specific oil companies in his statement, while the Department of Justice did not immediately respond to requests for comment.
The American Petroleum Institute (API), which represents major oil and gas producers in the United States, rejected the accusation.
According to API spokesperson Bethany Williams, “Gasoline prices don’t move in lockstep with crude oil, especially during a major global disruption that is still affecting supply, refining and inventories.”
Energy experts also questioned the timing of Trump’s criticism. Karen Young, a senior research scholar at Columbia University’s Center on Global Energy Policy, described the move as “political theater,” noting that reductions in crude oil prices typically take weeks to affect fuel prices at retail stations.
She added that state and local taxes also influence pump prices across the country.
Meanwhile, West Texas Intermediate (WTI) crude oil dropped to an intraday low of $69.63 per barrel on Wednesday before closing around $70.22, representing a decline of about four percent. Brent crude also fell by 4.2 percent to settle at $73.83 per barrel.
The decline in oil prices was partly attributed to improving conditions around the Strait of Hormuz, a key global shipping route. The International Maritime Organization (IMO) announced that thousands of crew members stranded in the Persian Gulf had been cleared to resume transit after safety assurances were secured.
IMO Secretary-General Arsenio Dominguez stated: “We have secured the necessary safety guarantees and have thoroughly verified the conditions for safe navigation.”
Data from GasBuddy showed the national average gasoline price stood at approximately $3.906 per gallon on Wednesday, more than 14 percent below its May peak. However, figures from AAA indicated that prices remain higher than the $3.22 per gallon average recorded a year ago.
Fuel prices have now declined for six consecutive weeks, reflecting easing tensions between the United States and Iran over access to the Strait of Hormuz, which handles nearly one-fifth of global seaborne oil shipments.
Earlier in the year, disruptions linked to the conflict pushed crude prices above $120 per barrel. Although prices have since eased, crude oil remains significantly higher than levels recorded at the start of 2026.
The issue has become increasingly significant ahead of the November midterm elections, with rising energy costs emerging as a major concern for American consumers and a political challenge for Trump and Republican lawmakers.
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