WASHINGTON – U.S. President Donald Trump has directed the Department of Justice (DOJ) to investigate major oil companies over allegations that they are not lowering gasoline prices fast enough despite a sharp decline in crude oil prices.
In a message posted on his Truth Social platform, Trump accused oil companies of charging consumers excessively at the pump while benefiting from lower crude oil costs.
“The big oil companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for oil. Those prices are dropping like a rock. In other words, customers are being gouged,” Trump wrote. He added that he had instructed the DOJ to “immediately start looking into this.”
The president’s comments come as global oil prices have fallen significantly in recent weeks following a reduction in tensions between the United States and Iran and the reopening of the strategically important Strait of Hormuz, through which roughly one-fifth of the world’s oil supply passes.
According to market data, U.S. crude oil prices have dropped by about 40 percent from their March peak and roughly 23 percent since May. Gasoline prices have also declined, but at a slower pace. The national average gasoline price in the United States stood at approximately $3.90 per gallon this week, down about 14 percent from its May high.
Trump argued that the decline at the pump does not reflect the much larger drop in crude oil prices and warned that gasoline prices should be falling faster. No details have yet been released regarding the scope of the DOJ investigation or which companies may be targeted.
Energy analysts note that retail fuel prices often take longer to respond to falling crude oil costs because fuel sold at gas stations may have been refined and purchased when oil prices were higher. Industry experts have also pointed to inventory costs and supply-chain factors that can delay price reductions.
The investigation adds a new chapter to the ongoing debate over fuel prices in the United States, where high gasoline costs have remained a major political issue amid concerns about inflation and the cost of living.
For Curaçao and other Caribbean economies, developments in global oil markets remain important because fluctuations in crude oil prices can eventually influence fuel, electricity, transportation, and shipping costs throughout the region.