President Donald Trump has ordered the Department of Justice to investigate oil companies for alleged price gouging, claiming retail gas prices are not falling fast enough despite a sharp drop in global crude oil. The national average gas price sits at $3.93 per gallon, down from a $4.50 peak but still 70 cents higher than last year. The oil industry attributes the lag to refining and supply disruptions from the Iran conflict, while experts view the probe as political theater ahead of the November midterm elections.
Trump DOJ investigation order
- ▪President Donald Trump accused oil companies of keeping gas prices high at the pump despite global crude oil prices dropping sharply
- ▪President Donald Trump announced on June 24, 2026, that he instructed the Department of Justice to immediately investigate oil companies for alleged price gouging
- ▪The Department of Justice declined to confirm a formal probe but stated it is committed to ensuring fuel affordability
Gas price crude oil disconnect
- ▪Academic studies show gasoline prices rise quickly when crude spikes but fall slowly, a phenomenon known as "rockets and feathers."
- ▪The national average price for a gallon of regular gasoline was $3.93 on June 24, 2026, down from a peak of over $4.50 in May 2026
Oil industry responses
- ▪An anonymous oil executive stated that companies plan to lay low and avoid a public fight with President Donald Trump
- ▪The American Petroleum Institute stated that gasoline prices do not move in lockstep with crude oil due to ongoing global supply, refining, and inventory disruptions
White House political pressure
- ▪Treasury Secretary Scott Bessent warned in April 2026 that the administration would monitor retail gas stations to ensure they lower prices
- ▪Senator Sheldon Whitehouse and Senator Ed Markey have previously urged federal action and windfall profits legislation targeting the oil industry
Presidential fuel price influence
- ▪Jason Bordoff stated that the president has very few policy tools to materially affect oil prices in the near term
- ▪Tom Kloza stated that major oil producers do not set retail prices, which are largely set by independent single-store owners
Midterm election concerns
- ▪Oil and gas executives surveyed by the Dallas Federal Reserve expressed concern over market uncertainty caused by President Donald Trump's social media announcements
- ▪High energy costs and a 4.2 percent inflation rate in May 2026 have fueled concerns that Republicans could lose control of Congress in the November midterm elections
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