The Department of Justice (DOJ) and the Federal Trade Commission (FTC) have called on state attorneys general to investigate and prosecute any illegal activities that may be contributing to elevated gasoline prices for American consumers [1]. In a letter signed by Associate Attorney General Stanley Woodward Jr. and FTC Chair Andrew Ferguson, the agencies highlighted that, despite a rapid decline in crude oil prices, the corresponding decrease in gasoline prices at the pump has not been fully realized by consumers [1].
The letter references a June 24 Truth Social post by President Donald Trump, in which he accused major oil companies of not reducing pump prices in line with falling crude oil costs, stating, "The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil. Those prices are dropping like a rock! In other words, customers are being ‘gouged.’ I have instructed the DOJ to immediately start looking into this. Gasoline prices better start going down a lot faster than what I’m seeing!" [1]. Trump reiterated his stance in a subsequent post, warning gasoline retailers to lower prices immediately and cautioning that failure to do so could result in "big problems" ahead [1].
The DOJ and FTC emphasized that recent volatility in crude oil prices does not exempt companies from antitrust or consumer protection laws, nor does it permit manipulation or collusion in retail pricing. They encouraged state attorneys general to utilize all available legal tools, including state-specific price gouging statutes, to address any misconduct causing unjustified price increases [1].
According to the article, gas prices surged following the U.S. military action against Iran earlier in the year but have since been on a downward trend. The AAA national average price for regular gasoline was $3.823 as of July 3, a decrease from $4.261 a month prior. Crude oil was reported at $68 per barrel and continuing to decline [1].
CONCLUSION
The DOJ and FTC are intensifying scrutiny of potential illegal practices in the petroleum market, urging state-level action to ensure falling crude oil prices are reflected at the pump. With gas prices declining but not as quickly as crude oil, authorities are signaling increased enforcement to protect consumers from unjustified price hikes.