President Donald Trump has directed the US Department of Justice to investigate major oil companies over allegations that they are unfairly keeping petrol prices high despite a sharp decline in global oil prices. The move comes as millions of American motorists continue to pay elevated fuel costs even as wholesale crude oil prices retreat from recent highs triggered by tensions in the Middle East.
In a post on social media, Trump accused oil companies of failing to pass savings on to consumers at the pump. He argued that crude oil prices have fallen significantly in recent weeks, yet petrol prices have not dropped at the same pace. Calling the situation “price gouging,” Trump said he expected fuel prices to decrease much faster and ordered federal authorities to immediately examine the issue. However, he did not identify any specific companies in his statement.
The controversy follows a period of extreme volatility in global energy markets. Oil prices surged after Iran responded to US-Israeli military actions by disrupting traffic through the Strait of Hormuz, one of the world’s most important oil shipping routes. The conflict pushed Brent crude prices close to $120 per barrel at their peak, sparking fears of prolonged energy shortages and higher fuel costs worldwide.
Since then, easing tensions and ongoing diplomatic efforts have helped calm markets. Brent crude has fallen below $76 per barrel, while US benchmark West Texas Intermediate (WTI) crude has also dropped significantly. Despite these declines, both benchmarks remain above the levels recorded before the conflict began. At the same time, average gasoline prices in the United States have eased from more than $4 per gallon earlier this year to around $3.93, though many consumers say the reductions have been too small to reflect the fall in oil prices.
Trump’s accusations mirror concerns raised in other countries, including the United Kingdom, where oil companies faced similar scrutiny over fuel pricing during the Iran conflict. However, UK regulators previously reported no widespread evidence of profiteering, stating that profit margins remained largely stable. The outcome of the US investigation could have significant implications for the energy sector and may intensify the debate over how quickly fuel retailers should respond when global oil prices decline.
source: bbc