President Trump announced on Wednesday that he has directed the Department of Justice to investigate ExxonMobil, Chevron and other oil companies over what he described as elevated gasoline prices.
"We are doing a big investigation on it," the president said, characterizing the inquiry as focused on potential price gouging by oil companies at the consumer pump.
In public remarks, Trump criticized the sector for not cutting gasoline prices in step with what he said was a significant release of oil reserves. He cited a large one-day release, saying, "They're not reducing the prices commensurate with what's happening. 19 million barrels came out yesterday. That is a FLOOD... and they should be much lower, the gasoline prices."
Earlier on Wednesday on his social platform, the president said he had instructed the Department of Justice to determine whether oil companies are failing to pass on lower crude costs to motorists. He repeated an accusation that companies are "gouging" customers.
Market reaction to the announcement was modest. Shares in ExxonMobil and Chevron were reported to be marginally down in extended hours of trading on Wednesday.
Context and implications
The announced Justice Department review seeks to examine whether retail gasoline pricing has lagged declines in crude costs and whether that lag constitutes unlawful conduct. The companies named by the president are major integrated oil producers and refiners, and the probe, as described by the president, targets pricing behavior at the pump.
Specifics on the scope, timeline or potential legal outcomes of the Justice Department's review were not provided in the president's remarks. The public statements focus on the possibility that gasoline prices have not adjusted downward sufficiently in response to a substantial release of oil reserves.
Quotes from the president
"We are doing a big investigation on it."
"They're not reducing the prices commensurate with what's happening. 19 million barrels came out yesterday. That is a FLOOD... and they should be much lower, the gasoline prices."
Earlier: he said he instructed the Department of Justice to examine whether oil companies are failing to lower gasoline pump prices in line with falling crude costs and accused the companies of "gouging" customers.
Market note
The only market reaction noted in the president's announcement was that shares in the named companies were marginally down in extended trading on Wednesday.
The public record in these remarks does not include further detail on the probe's parameters or expected next steps from the Justice Department.