On Friday, the Donald Trump administration intensified its scrutiny of the petroleum industry by urging state officials to investigate whether oil companies or fuel retailers are unlawfully keeping gasoline prices elevated despite falling crude oil costs.
DOJ, FTC Urge States To Probe Potential Gas Price Manipulation
The Department of Justice and the Federal Trade Commission sent a July 3 letter to state attorneys general encouraging them to use “all tools available” to investigate whether companies are violating antitrust or consumer protection laws by artificially inflating gasoline prices.
Associate Attorney General Stanley Woodward Jr. and FTC Chair Andrew Ferguson said federal authorities are “closely monitoring petroleum markets” for potential antitrust violations and urged state law enforcement agencies to join those efforts.
“We urge state law enforcers to join us in investigating illegal practices,” the officials wrote.
“Recent volatility in crude oil prices does not suspend either the antitrust laws or state consumer protection laws, and it does not authorize companies to manipulate retail prices or collude with their competitors.”
The letter comes as the administration argues that lower crude oil prices should be translating into cheaper gasoline for consumers.
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Trump Presses Oil Industry As Pump Prices Remain Elevated
President Donald Trump has repeatedly criticized the pace at which gasoline prices have declined, arguing that consumers are not benefiting quickly enough from lower oil prices.
Earlier this week, Trump wrote on Truth Social, “Gasoline Retailers must get their Prices down, IMMEDIATELY!”
Days earlier, he said he had directed federal prosecutors to investigate whether oil companies were manipulating prices, claiming customers were being “gouged.”
The national average gasoline price stood at $3.82 per gallon as of Friday afternoon, while motorists in several West Coast states and Hawaii were still paying more than $5 per gallon, The Hill noted.
Chevron Says Lower Gas Prices Take Time To Reach Consumers
Oil companies have pushed back on the administration’s criticism, arguing that gasoline prices typically lag changes in crude oil markets.
Chevron Corp.’s (NYSE:CVX) Chief Financial Officer Eimear Bonner told CNBC that while the company expects pump prices to ease as markets stabilize, “It’s going to take time though. There is a lag between … oil prices and reductions in oil prices and when that shows up at the pump.”
The administration has not accused any specific company of wrongdoing, but its latest directive signals increased federal and state scrutiny of the industry’s pricing practices.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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