On Wednesday, President Trump announced that he has asked the Justice Department to look into oil companies that aren’t reducing their gas prices, despite a drop in oil costs, claiming these companies are “ripping off” consumers.
While Trump didn’t specify which companies he was referring to in a social media post made around midnight, neither the White House nor the Justice Department provided further comment after regular working hours.
Recent data indicated that diplomatic efforts between the U.S. and Iran have brought some relief, leading to a continuous decline in gasoline prices for six weeks.
Despite this decline, Trump expressed that the drop in gas prices isn’t keeping pace with the decrease in oil prices.
“Gasoline prices had better start coming down much sooner than I see them!” he stated.
These comments arise as many consumers are worried about gas prices, particularly with the upcoming midterm elections where Trump and Republicans are aiming for a majority in Congress.
As of early Wednesday, the average gas price in the U.S. stood at $3.906 per gallon, reflecting a decline of over 14% from its peak in May, according to GasBuddy.
In contrast, oil prices have declined by 23% during the same timeframe, following an interim peace agreement between the U.S. and Iran, which also reopened the Strait of Hormuz, a crucial route for a significant portion of the world’s oil supplies.
Since March, U.S. crude oil prices have dropped by roughly 40%.
“Big oil companies are not lowering their prices to match the precipitous drop in the price they are paying for oil. Prices are falling like a rock! In other words, their customers are being ‘ripped off’,” Trump said in a Truth Social post.
“I have directed the Department of Justice to immediately begin an investigation.”
Despite recent decreases, pump prices remain considerably higher than the $2.764 per gallon from January, prior to the escalation of the Iran conflict.
