President Trump instructs DOJ to look into possible price gouging as gas prices fail to match current dropping price of oil

President Donald Trump has directed the Department of Justice to investigate whether major oil companies are keeping gasoline prices artificially high despite a sharp decline in crude oil costs in recent weeks. The drop in oil prices has come as a memorandum of understanding was recently signed by the US and Iran. 

In a Truth Social post early Wednesday morning, Trump accused large energy producers of failing to pass lower oil prices on to consumers at the pump. “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! In other words, customers are being 'gouged.'”

Trump added, “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!”

The announcement comes as gasoline prices across the United States have declined for six consecutive weeks. According to GasBuddy, the national average price for a gallon of regular gasoline fell by roughly 14 cents last week, reaching $3.85 as of Monday.

The downward trend has coincided with falling crude oil prices, driven in part by expectations that tensions involving Iran and the Strait of Hormuz may ease. Energy traders have increasingly bet that diplomatic efforts involving Washington and Tehran could help restore stability to one of the world's most important oil shipping routes.

Reports that commercial tankers have continued moving through the Strait of Hormuz without major interference have also helped calm markets. As a result, benchmark oil prices have retreated to their lowest levels in months.

As of overnight Tuesday, Brent crude was trading near $76 per barrel while West Texas Intermediate hovered around $73 per barrel.

Analysts at ING said improving conditions in the Persian Gulf were helping support expectations of steadier oil flows. “Positive signals from the Persian Gulf are fuelling optimism about oil flows through the Strait of Hormuz. Vessel crossings increased in recent days, although they remain well below pre-war levels,” ING commodity analysts wrote in a note.

A senior analyst at Mitsubishi UFJ Research and Consulting similarly told Reuters that crude prices had been pressured lower by hopes for reduced tensions in the region and improving oil shipments through the strategic waterway.