High pump prices of gasoline angers Trump as he instructs Justice Department to probe oil companies
Washington D.C., June 24
,: US President Donald Trump expressed his anger over US oil companies not bringing down the pump prices of gasoline despite paying a lower price for the oil.
In a Truth Social post, Trump said that customers are being "gouged" and that prices should start going down a lot faster than what he is seeing. Trump added that he has given instructions to the Department of Justice (DoJ) to look into the issue.
Trump's outburst comes in the backdrop of oil prices sliding, with the US WTI trading at around USD72 and the global benchmark Brent around USD75.6. Oil prices have declined significantly from what they were at the peak of the conflict in West Asia. The peace agreement between the US and Iran has brought peace to the turbulent region after nearly four months of fighting, and the completion of the first round of talks has inspired hope of a durable peace.
The lifting of US sanctions on Iranian oil and petrochemical exports also brought some respite to the energy markets. The sanctions waiver means that the Iranian oil exports could resume and Tehran could get the payments in US dollars, making it easier for them to strike long-term contracts.
The closure of Strait of Hormuz brought turmoil to the global energy markets with dire predictions of crude oil touching as much as USD200 if the conflict extended for a few more months.
High pump prices of gasoline have been the biggest worry for Trump and the Republicans as they head for the US mid-term elections. Red-hot US inflation has brought front and centre the direct impact of the Iran war on US consumers as high prices led to household budgets shrinking and sentiment dropping.
The US Federal Reserve, under its new chief Kevin Warsh, also hinted in its June policy that it could go for a rate hike as inflation concerns mount. A key inflation gauge that the Federal Reserve tracks will be out this week and will be closely parsed for future trajectory.
— ANI
Reader Comments
Interesting how quickly things change. One day they're sanctioning Iran, next day they're making peace deals. As an Indian watching global politics, it feels like the US plays chess while we're stuck playing ludo with our own fuel pricing policies! 🙃
Trump's outrage is a bit rich considering his administration's policies contributed to the volatility. But hey, at least he's acknowledging the pain of ordinary citizens. Our Indian politicians could learn something - when was the last time any of them publicly questioned oil companies about pricing? 😒
As an American living in India, this is fascinating. Back home, people are furious about gas prices. Here in Delhi, I pay even more per litre! The irony is that Indian consumers have been gouged for decades while politicians look the other way. Maybe we need our own Trump-like figure to call out these practices.
The global energy chessboard is something else! US-Iran peace, Strait of Hormuz reopening, and oil prices dropping - yet consumers don't benefit immediately. Classic middleman economics. Our Indian oil marketing companies do the same thing - prices go up like a rocket but come down like a feather. 😅
Respectfully, this is political theater. Trump needs a scapegoat before midterms. The real issue is how quickly oil companies adjust prices - up in minutes, down in weeks. But a DOJ probe? That's like using a sledgehammer to crack a nut. Let the market work, or regulate properly, but stop the grandstanding.
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