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US to probe petrol price gouging claims, Trump says

US to probe petrol price gouging claims, Trump says

Summary

President Donald Trump has ordered the Department of Justice to investigate major energy companies for potentially charging high petrol prices despite a fall in crude oil costs. He claims that petrol prices have not dropped as much as expected after the recent decrease in oil prices following the Iran conflict.

Key Facts

  • President Trump asked the DOJ to start an immediate probe into petrol price gouging by big oil companies.
  • He said petrol prices are not falling as fast as crude oil prices on global markets.
  • Oil prices spiked after the US and Israel attacked Iran, which led to Tehran closing the Strait of Hormuz, disrupting oil shipments.
  • Brent crude oil price reached nearly $120 a barrel in May but recently dropped to about $76 a barrel.
  • The average price of regular gasoline in the US dropped from over $4 a gallon in April to about $3.90 but is still higher than before the Iran conflict.
  • Trump’s social media post did not name any specific oil companies.
  • The situation follows peace talks that have helped reduce oil prices but not to pre-conflict levels.
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