0
On June 23 (local time), in Pennsylvania, people wave American flags in front of a gas station as U.S. President Donald Trump's motorcade passes by. / Courtesy of AP-Yonhap

Reuters reported on the 24th (local time) that U.S. President Donald Trump has ordered the Department of Justice to launch an investigation, accusing American oil companies of gouging consumers by failing to lower gasoline prices despite a drop in international crude oil prices.

According to Reuters, the Trump administration released a video on X (formerly Twitter) that same day showing President Trump explicitly naming American oil majors ExxonMobil and Chevron as targets of the investigation.

"Oil prices have dropped substantially, yet we are seeing no change in the prices at the pump," President Trump stated in the video.

He also posted on Truth Social, noting that oil companies are failing to lower gas station prices proportionally even though crude prices have plummeted. "Crude oil is dropping like a rock! This means consumers are being ripped off," he wrote, subsequently adding, "I have directed the DOJ to immediately initiate an investigation."

On the day of the announcement, crude oil prices had fallen 36% from their May peak, yet the average U.S. gasoline price stood at $3.93 per gallon, significantly higher than the $2.76 recorded in January. It represents a decline of only about 14% from the May high.

Bethany Williams, a spokesperson for the American Petroleum Institute, which represents oil producers including ExxonMobil and Chevron, explained in response that gasoline prices do not immediately align with crude oil prices, particularly during major global disruptions where supply, refining, and inventory conditions continue to play a major role.

Reuters interpreted this measure as a political move by Trump to align himself with consumers and pressure the oil industry, seemingly aimed at addressing voter frustration ahead of the upcoming mid-term elections in November.

                                                                                                          Park Jin-sook