The Department of Justice (DOJ) and Federal Trade Commission (FTC) have jointly urged state attorneys general to aggressively investigate and prosecute illegal practices driving up gasoline prices. This move comes amid concerns that reductions in crude oil prices have not been fully passed on to consumers at the pump.
In a letter signed by Associate Attorney General Stanley Woodward Jr. and FTC Chair Andrew Ferguson, the federal agencies emphasized that recent decreases in oil prices should lead to lower gas prices. Yet, a significant portion of those savings appears to be withheld from consumers. The letter specifically references a social media post by former President Donald Trump, who accused major oil companies of price gouging and pressured the DOJ to act swiftly.
The letter highlights that while crude oil prices have dropped sharply following earlier spikes related to geopolitical events, retailers have not reduced gasoline prices proportionally. The AAA national average for regular gas dropped recently but remains above levels justified by current oil prices.
Both the DOJ and FTC stressed that ongoing market volatility does not exempt companies from complying with antitrust legislation or state consumer protection laws. They urged states to utilize their legal frameworks, including price gouging statutes enacted during emergencies or market disruptions, to identify and address unfair pricing practices.
The agencies called for coordination among federal and state law enforcement to ensure that unlawful conduct—such as collusion, price manipulation, or other anticompetitive behavior—is investigated thoroughly. They reminded states that enforcement of these laws remains critical to protect consumers and ensure market fairness.
The letter urges gasoline retailers to adjust prices downward in a timely manner, reflecting the downward trend in crude oil costs. The federal government’s plea follows public and political pressure to hold the oil industry accountable for maintaining prices that may not reflect actual market conditions.