Trump asks – President Donald Trump says he is asking the Department of Justice to investigate oil companies over what he calls persistent price gouging as gasoline prices fail to fall fast enough for Americans.
When gasoline prices began climbing in March, the White House framed it as a supply shock tied to the United States’ war with Iran. But as pump prices started sliding only gradually, President Donald Trump shifted from explaining the rise to challenging the companies he believes profit from it.
On June 24, Trump wrote on Truth Social that he is asking the Department of Justice to look into oil companies, arguing that the prices companies pay are “dropping like a rock,” while prices at the pump aren’t coming down quickly enough. He said customers are being “gouged.”
The timing matters. Americans saw gasoline prices rise starting in March, when the Trump administration began a war with Iran. In the months that followed. Iran at times strategically closed off the Strait of Hormuz to hamper the United States’ supply of foreign oil. Pump prices peaked in May and have been falling for six weeks. but the climb lasted longer—surging for three months after the war began.
The national data show how sharp the turn was before the decline: gas prices spiked 21.2% in March, the largest monthly increase since the Labor Department began keeping track in 1967. They rose 5.4% in April and 7% in May.
Still, even with the slide underway, relief hasn’t arrived fast enough for Trump. The national average price for a gallon of regular gasoline on June 24 is $3.93, down from $4.03 last week and $4.52 last month, according to AAA. It is still up from $3.22 this time last year.
Trump’s move comes as he also tries to tighten the narrative around Iran’s role in supply disruptions. On June 24. he wrote on Truth Social that Iran confirmed to the United States that it is not charging tolls or extracting any other fees on ships traveling through the Strait of Hormuz. Trump said if that information proves false, he would end the peace negotiations.
By the end of June 24, Trump plans to head to Capitol Hill to sign a bill and meet with Republican senators. The visit places him in Congress less than 24 hours after the Senate’s symbolic vote to end the war in Iran.
Economists expect inflation to stay elevated in the months ahead, even as gasoline trends improve. Companies, they argue, still face high insurance costs and uncertainty about ships’ ability to travel safely through the Strait of Hormuz. But the direction at the pump is expected to remain downward.
Patrick De Haan. head of petroleum analysis at GasBuddy. predicted that the national average for a gallon of regular gas could fall below $3 later this year. Earlier this week, the U.S. Treasury issued a 60-day license allowing the sale. delivery and export of Iranian oil—a decision De Haan said would likely speed up the decline in gas prices. “Allowing Iran to sell oil is allowing more supply into a market that has been short of oil for the last couple of months because of the strait. so from a consumer aspect. that’s good. ” De Haan said.
His skepticism about the likelihood of a successful probe is where the political pressure meets the mechanics of the market. Calls to investigate oil and gas companies aren’t new, and they have come from both sides of the aisle.
Last month, Sen. Ed Markey. D-Massachusetts. sent a letter to Federal Trade Commission Chairman Andrew Ferguson asking the agency to investigate companies that may be engaged in price gouging. market manipulation. or anti-competitive pricing practices. Markey argued that if supply chain disruptions driven by the United States’ war with Iran were the only cause of rising pump prices. oil company expenditures and losses should move in step with gasoline costs. “We are not seeing a neutral effect on profits,” Markey wrote. “We are not seeing a neutral effect on profits. however ‒ we are seeing oil companies secure surging excess windfall profits that are directly tied to their establishment of higher gasoline costs.”.
De Haan pushed back on the idea that companies—or stations—can cut prices quickly without risking losses. He said it is “justifiable” that stations remain cautious about dropping prices too fast because they don’t want to get stuck selling below replacement costs if prices rebound.
“If [the Iran war] hadn’t happened. margins wouldn’t have shrunk significantly in March and April. and they also wouldn’t have expanded to the current level now. ” De Haan added. “All of this can be justified by market movements, and that’s why any investigation will likely fail. It’s because gas stations are responding to the current environment. and I don’t think you can penalize the speed of decline.”.
The federal scrutiny Trump is seeking. and the regulatory inquiries Markey pressed last month. now land at a moment when pump prices are already easing—but not enough to quiet the political fight. Prices are down from earlier highs. yet the past year’s comparison remains painful for drivers. and the broader outlook still depends on what happens with the Strait of Hormuz supply situation and the flow of Iranian oil under the Treasury’s 60-day license.
Trump Department of Justice DOJ investigation gas prices gasoline oil companies price gouging Strait of Hormuz Iranian oil Federal Trade Commission Andrew Ferguson Ed Markey AAA GasBuddy Patrick De Haan inflation U.S. Treasury 60-day license