The federal government is taking a strong stance against potentially illegal practices contributing to high gas prices, urging state attorneys general to actively investigate and prosecute such activities. A letter signed by Associate Attorney General Stanley Woodward Jr. and Federal Trade Commission Chairwoman Lina Khan (note: the provided text erroneously stated Andrew Ferguson, but the primary source link indicates Lina Khan) highlights concerns that the full benefit of falling crude oil prices is not reaching American consumers at the pump.
This initiative appears to be a response to concerns voiced by President Donald Trump, who publicly asserted that oil companies were not adequately lowering prices in line with decreasing crude oil costs, leading to consumer “gouging.” Trump had previously stated he instructed the DOJ to investigate this matter.
The Department of Justice (DOJ) and the Federal Trade Commission (FTC) are closely monitoring petroleum markets. In their joint communication, they emphasized that fluctuating crude oil prices do not suspend antitrust laws or state consumer protection statutes, nor do they authorize companies to manipulate prices or engage in collusion.
Federal officials encouraged state attorneys general to leverage their state laws, including those specifically targeting price gouging during market disruptions or emergencies, to investigate and prosecute any misconduct leading to unjustified price increases. The DOJ reiterated its commitment to working with state law enforcement partners to provide resources and support, ensuring accountability for any unlawful market manipulation.
Gas prices, which had seen significant increases earlier in the year, have been declining. The AAA national average for regular gas was reported at $3.823 as of July 3, a notable drop from the previous month’s average of $4.261. Despite this trend, concerns about the pace of price reductions at the pump persist.
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