Business

US to probe petrol price gouging claims, Trump says

BBC Business · 2026-06-24

AI SUMMARY

• What happened: US President Donald Trump has ordered the Department of Justice to investigate major energy companies for allegedly "gouging" customers by not lowering petrol prices despite a drop in crude oil costs. • Why it matters: The investigation highlights public concern over the disparity between crude oil prices and retail petrol costs, which could impact consumer prices and the energy sector amid ongoing international conflicts affecting oil supply. • What to watch next: Monitor developments regarding the DOJ's investigation and any potential changes in pricing strategies by energy companies in response to government scrutiny and market conditions.

**US President Orders Investigation into Petrol Price Gouging Claims**

In a recent statement, US President Donald Trump announced that he has directed the Department of Justice (DOJ) to initiate an investigation into major energy companies. The investigation is centered around allegations of price gouging, as consumers have not seen a corresponding decrease in petrol prices despite a significant drop in crude oil costs on global markets.

Trump took to social media to express his concerns, stating that he expected petrol prices to decline "a lot faster" than they have following the recent fluctuations in oil prices. He emphasized that the major oil companies are not reducing their prices at the pump in line with the sharply lower prices they are paying for crude oil, which he characterized as "gouging" customers.

The backdrop to Trump's comments includes recent volatility in oil prices, particularly following the US and Israeli military actions against Iran that began on February 28. The conflict led to Tehran's response of effectively closing the vital Strait of Hormuz, a crucial passage for global oil shipments, which caused energy prices to spike. Brent crude, the global oil benchmark, reached nearly $120 per barrel in May but has since fallen to approximately $76 per barrel as diplomatic efforts progress. However, this price is still higher than the roughly $70 per barrel mark observed before the onset of the conflict.

As of now, the average price of regular gasoline in the United States has decreased to about $3.90 per gallon, down from over $4 per gallon in April. Despite this reduction, prices remain elevated compared to levels prior to the Iran conflict.

Trump's remarks have drawn attention to the broader issue of energy pricing and the impact on consumers. While he did not specify which companies he believes are involved in price gouging, his call for an investigation reflects growing public concern over the disparity between crude oil prices and retail petrol costs.

The DOJ has yet to respond to inquiries regarding the investigation, and the White House has also been contacted for further comment on the matter. As the situation develops, the focus will likely remain on how energy companies adjust their pricing strategies in response to both market conditions and government scrutiny.

This investigation could have significant implications for the energy sector and consumer prices, particularly as the nation navigates the ongoing effects of international conflicts on oil supply and pricing.

Source: BBC Business
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