President Trump has called for an investigation into major oil companies, accusing them of price gouging after crude oil prices plummeted. Trump claimed that oil companies are not lowering gasoline prices in line with falling crude costs, leaving customers overcharged.
Global oil prices have dropped over 25% this month, with the national average U.S. gasoline price falling to $3.928 per gallon from $4.515 a month ago. Energy markets were previously rocked by the Iran war, which pushed U.S. gasoline prices to their highest levels since July 2022.
The investigation comes as the U.S. and Iran reached an interim deal to end the war, improving shipping conditions through the Strait of Hormuz. State and local taxes are embedded in U.S. gasoline prices, though the country applies one of the lowest overall tax burdens globally.
