Trump orders DOJ probe into 3 oil majors over gas price gouging

Trump on June 25 ordered the DOJ to probe Chevron, BP and ExxonMobil for potential gasoline price gouging, escalating his administration's scrutiny of the energy sector ahead of the summer driving season. Shares of the three companies slipped in overnight trading following the announcement, with Chevron falling more than 2%, according to market data.

"Customers are being gouged at the pump while these companies report record profits," Trump said when asked about the investigation, according to White Pool reports. The probe targets three of the world's largest publicly traded oil producers, which together operate thousands of retail gasoline stations across the United States and control a significant share of the nation's refining capacity.

The investigation follows a period of elevated gasoline prices that have become a political liability for the administration. Chevron, ExxonMobil and BP collectively reported more than $100 billion in combined net income over the past two fiscal years, according to their most recent annual filings, while average US gasoline prices hovered near multiyear highs. The three companies have denied any wrongdoing, with Chevron and ExxonMobil issuing statements saying they comply with all applicable laws and competition regulations.

The DOJ probe introduces significant regulatory risk for an industry that has faced intensifying political pressure over retail fuel pricing. If investigators uncover evidence of coordinated pricing behavior, the companies could face penalties, forced price adjustments or operational remedies that alter how gasoline is priced at the wholesale and retail levels. The investigation will likely examine whether the companies engaged in price fixing, supply manipulation or other anticompetitive practices that kept pump prices artificially high.

The investigation marks the latest chapter in Washington's fraught relationship with Big Oil. The Biden administration previously launched its own probe into alleged collusion between oil companies and OPEC, while several state attorneys general have filed lawsuits accusing the majors of misleading consumers about climate risks. Trump's decision to name specific companies signals a more targeted and aggressive approach than prior inquiries, which focused on broader industry practices rather than individual corporate behavior.

For the oil majors, the stakes extend beyond potential fines. A prolonged investigation could distract management, delay capital allocation decisions and weigh on share prices at a time when the industry is already grappling with demand uncertainty and the energy transition. Chevron, ExxonMobil and BP have collectively committed tens of billions of dollars to low-carbon investments through 2030, and any regulatory overhang could complicate those plans. Investors are now pricing in the risk that the probe could lead to structural remedies, including potential divestitures or pricing caps.

The DOJ has not disclosed a timeline for the investigation. The next major milestone will be any formal subpoena or document request issued to the companies, which would signal the probe's scope and intensity. Legal experts expect the initial phase of the investigation to focus on internal communications, pricing data and wholesale fuel transaction records. The probe could take 12 to 24 months to reach a conclusion, based on the duration of similar DOJ antitrust investigations in the energy sector.

The broader energy sector is watching closely. ConocoPhillips and other independent refiners could face collateral scrutiny if the investigation expands beyond the three named companies. The probe also raises questions about the administration's broader energy policy, which has sought to balance domestic production incentives with consumer price relief.

This article is for informational purposes only and does not constitute investment advice.