Trump Orders DOJ Investigation Into Oil Companies Over Gasoline Prices

President Donald Trump ordered the Department of Justice on June 24, 2026, to investigate major oil companies, accusing them of failing to reduce gasoline prices proportionally to sharp declines in crude oil costs. In a Truth Social post published just after midnight, Trump stated that "customers are being 'gouged'" and demanded that gasoline prices fall faster, writing "Gasoline prices better start going down a lot faster than what I'm seeing!"

The price disparity Trump highlighted reflects significant market movements. Crude oil prices, measured by WTI, fell approximately 27 percent over the preceding month and were trading at $70.45 per barrel on June 24, about 5 percent higher than before the Iran conflict began. Despite this decline, U.S. gasoline prices averaged $3.93 per gallon—approximately 13 percent lower than a month prior but still 32 percent higher than pre-conflict levels. Over the most recent month, gasoline prices had decreased an average of 49 cents per gallon as expectations grew for an end to hostilities with Iran.

Energy experts characterized Trump's accusation as oversimplified, noting that gasoline pricing involves multiple complex factors beyond oil company control. According to the Energy Information Administration, crude oil represents approximately 51 percent of retail gasoline prices, while federal and state taxes contribute 17 percent, refining costs and profits contribute 14 percent, and distribution and marketing account for 17 percent. Gas station owners, not oil companies, set pump prices and often have limited discretion when crude costs surge. Additionally, a significant time lag exists between crude price changes and consumer impact, as refineries purchase oil in advance and gasoline travels through multiple distribution channels—pipelines, ships, trucks, and fuel terminals—before reaching filling stations.

Karen Young, a senior research scholar at Columbia University's Center on Global Energy Policy, dismissed the investigation as "political theater," emphasizing that gasoline price mechanics in the United States do not support Trump's price-gouging theory. Energy analysts noted that even after crude prices decline, weeks or longer may pass before market changes propagate through refineries and reach consumers. Some experts suggested that inventory replenishment following the reopening of the Strait of Hormuz would further delay gasoline price decreases.

Trump's directive coincided with his campaign efforts ahead of midterm elections, as he sought to frame improving energy market conditions as evidence of economic recovery. The investigation reflected his administration's concern about the economic fallout from the Iran conflict and its potential impact on voter sentiment regarding living costs.