- President Trump accused oil companies of gouging consumers by not lowering gasoline prices in line with falling crude oil costs.
- Trump expressed frustration that gasoline prices do not reflect the decline in oil prices, stating that consumers are being gouged.
- Gasoline prices in the U.S. averaged $3.92 as of early Wednesday, down from $4.52 a month ago, indicating a drop of nearly 13%.
- Trump's call for a DOJ investigation into gasoline prices comes amid a significant drop in crude oil prices, which fell 27% in the last month.
- Experts indicate that gasoline prices do not always move in sync with crude oil prices, especially during global disruptions affecting supply and refining.
- Gas prices are still nearly $1 higher than before the recent conflict, and 22% more expensive than last year.
President Trump has taken aim at the oil industry, accusing major companies of price gouging as gasoline prices remain high despite a significant drop in crude oil costs.12345
"The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil," Trump stated in a Truth Social post.
West Texas Intermediate, the U.S. oil gauge, has fallen more than 25% so far this month, trading at $70.45 a barrel.
Despite this, the national average gas price is currently $3.92, down from $4.52 a month ago, yet still almost $1 more per gallon than before the war and nearly 22% more expensive than last year.
Trump has instructed the DOJ to investigate whether consumers are being "gouged" at the pump.
"The price of fuel is not only a national security issue, it impacts the wallet of every American," a DOJ spokesperson noted.
Critics argue that accusations of gouging are common during times of high gasoline prices, with Big Oil reportedly pocketing over $40 billion in excess profits since the conflict in Hormuz began.
"If President Trump wants to protect consumers from high gasoline prices, the most important step is to ensure that the Strait of Hormuz returns to the open and secure state it was in before his attack on Iran," said one analyst.
“Trump has accused oil companies of not lowering gasoline prices in line with falling crude oil costs, calling it price gouging. He has instructed the DOJ to investigate this issue, highlighting the impact on consumers.”
AP News
