DOJ to Investigate
The average U.S. pump price for gasoline sat at $3.93 a gallon on June 24 — down just 14% from the May peak of $4.56, even though crude oil had crashed 40% from its wartime high. Shortly after midnight, President Trump lashed out on Truth Social, ordering the Department of Justice to "immediately start looking into" what he called price gouging by big oil companies.
The gap between crude and gasoline prices has widened since a June 16 interim ceasefire with Iran partially reopened the Strait of Hormuz. Brent crude fell below $75 a barrel for the first time since the war began, yet drivers saw far slower relief at the pump. AAA data showed the national average still nearly a dollar above pre-invasion levels and $1.12 above January’s low.
Political Pressure Before Midterms
Trump’s move came just a week after he mocked the word “affordability” as “fake,” a comment that resurfaced as May inflation hit a three‑year high. With the November midterms approaching and his party’s narrow majorities at risk, the president singled out ExxonMobil and Chevron by name later that day, telling reporters they were among the targets of the investigation.
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’. I have instructed the DOJ to immediately start looking into this. Gasoline prices better start going down a lot faster than what I’m seeing!Donald Trump, President of the United States
A DOJ spokesperson confirmed the review, telling ABC News: “The price of fuel is not only a national security issue, it impacts the wallet of every American. We will always commit to ensuring affordability in this nation.” Neither the White House nor the DOJ provided details on the probe’s scope or legal basis outside regular business hours.
Chevron CFO Eimear Bonner told CNBC on June 25 that gasoline prices would continue to decline but cautioned against expecting an abrupt crash, pointing to refinery and distribution costs that lag crude movements. Industry analysts note that pump prices are set by a complex chain of refiners, blenders, and retailers, not directly by the major oil companies Trump targeted.
With the investigation in its infancy, consumers are left wondering whether the threat of federal scrutiny will accelerate the drop at the pump — or if the rift between crude and gasoline prices will become a defining economic issue as the campaign season heats up.
