Trump calls out Exxon and Chevron in probe over alleged gasoline price ‘gouging’

President Donald Trump said on Wednesday he has instructed the Department of Justice to look into oil companies for not lowering gasoline pump prices in line with falling crude costs, accusing the companies of "gouging" customers.

The Trump administration posted a video clip on X later on Wednesday in which Trump named U.S. oil producers Exxon Mobil and Chevron as part of the probe.

"Oil prices have come down so much and we are not seeing anything at the pump," Trump said in the clip.

Exxon and Chevron did not immediately respond to requests for comment.

Oil prices spiked this year after the U.S. and Israel launched strikes on Iran in late February, and consumers have raised concerns over high gasoline prices, as the president and his fellow Republicans battle to hold narrow majorities in Congress in November's midterm elections.   

Diplomacy between Washington and Tehran to resolve the conflict has translated into some relief at the pump for Americans, data showed earlier this week, with gasoline prices falling for a sixth straight week.

However, Trump said the fall in gasoline prices was neither enough nor proportionate with declines in 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 said in a post on Truth Social.

"I have instructed the DOJ to immediately start looking into this," he added.

Pump prices remain significantly higher than the $2.76 per gallon recorded in January, more than a month before the Iran conflict began. The average price of gasoline in the U.S. was $3.93 per gallon on Wednesday, AAA data showed, down nearly 14% from the peak in May. 

U.S. crude oil prices have fallen 36% from their highest point in May, after the U.S. and Iran reached an interim peace deal and reopened the Strait of Hormuz, through which one-fifth of global oil supply moved before the war began. 

"Gasoline prices don’t move in lockstep with crude oil, especially during a major global disruption that is still affecting supply, refining and inventories," said Bethany Williams, a spokesperson for the American Petroleum Institute, a trade group that represents oil producers including Exxon and Chevron.