President Donald Trump has sharply criticized major oil companies for not passing on recent crude oil price declines to consumers, intensifying pressures on the industry amid persistently high gasoline costs in the United States. This development comes more than a week after Trump announced an agreement that helped ease tensions related to the U.S. conflict with Iran.
Despite crude oil prices falling approximately 27% since early June to around $70 per barrel—approaching pre-conflict levels of about $67—the average retail price of gasoline remains near $3.93 per gallon, nearly a dollar above prices before the hostilities. Trump has accused oil producers of price gouging, asserting on his social media platform Truth Social that gasoline prices should be dropping more sharply in line with the crude price decline. He further revealed that he has instructed the Justice Department to investigate the pricing practices of major oil companies.
Trump’s rhetoric on gasoline pricing echoes tactics previously employed by President Joe Biden and Democratic officials, who accused the oil industry of profiteering amid soaring fuel prices triggered by Russia’s invasion of Ukraine in 2022. Similarly, California Governor Gavin Newsom has also frequently criticized oil companies over elevated pump prices. White House spokeswoman Taylor Rogers emphasized that the administration remains focused on economic relief for consumers and noted that historically, prices tend to follow drops in crude costs.
Industry executives and analysts have pushed back on Trump’s claims, highlighting the complex and gradual nature of the fuel supply chain that prevents immediate price adjustments at the pump. Bryan Sheffield, managing partner of West Texas producer Formentera Partners, noted that markets do not reprice gasoline instantaneously. The American Petroleum Institute, representing major oil producers, said gasoline prices do not move in perfect synchrony with crude oil—especially during ongoing global disruptions affecting refining capacity and inventories—and stressed the industry's commitment to market stability.
Historically, Trump’s administration has maintained relatively close ties with the fossil-fuel sector, having rolled back environmental regulations, expanded drilling access on federal lands, and provided tax relief to oil companies. However, tensions surfaced earlier this year over tariffs on Canadian energy imports and steel—essential for equipment used by producers—as well as the president’s push for a $50-per-barrel oil price, which industry leaders found frustrating.
During the conflict with Iran, oil executives cautioned that failure to reopen the Strait of Hormuz could cause sustained fuel price increases. While some feared further government intervention such as export restrictions, administration officials publicly dismissed such measures but alluded to holding “bad actors” accountable.
Energy market analysts characterize presidents from both parties as routinely blaming oil producers when fuel prices climb, but suggest Trump may pursue more aggressive actions than typically seen. Insiders within the industry expect the current friction to ease but remain wary of unpredictable moves from the administration. They also warn that fuel prices could escalate once again if inventory levels shrink further in the coming weeks.