Feds Urge State Attorneys General To Probe Gas 'Price Gouging'
Justice and FTC cited President Trump's complaints lower crude costs are not reflected at the pump.
The Justice Department and the Federal Trade Commission urged state attorneys general nationwide Friday to investigate potential unlawful “price gouging” in retail gasoline markets.
The agencies cited President Trump’s complaints that pump prices have not fallen in step with declining crude-oil prices.
Oil and gas prices rose sharply after the United States began its military operation against Iran in late February. With fighting eased and shipping through the Strait of Hormuz starting to move, Brent crude was around $72 a barrel Friday, very close to pre-conflict prices — and far below the $120+ a barrel wartime high.
Yet American consumers continue to pay elevated prices at the pump.
Monday’s national average gasoline price is $3.80 per gallon, AAA reports, down nearly 40 cents from a month earlier and 76 cents below the May 21 peak of $4.56 a gallon.
In California, where the state motor-fuel tax increased July 1, the average price for a gallon of regular gasoline was about $5.39 on Friday, roughly $1.55 above the July 2 national average.
In a joint letter, the agencies told state attorneys general that while federal antitrust laws apply to oil and fuel markets the same as any other industry, states also possess legal authority that may be used to address unjustified price increases: “We urge you to use all tools available under your state laws to investigate and prosecute any misconduct causing unjustified price increases.”
The letter includes Mr. Trump’s June 24 Truth Social post noting crude oil prices had fallen sharply while gas has not. He alleged consumers are being “gouged” and directed the Justice Department to investigate possible anticompetitive conduct. “Gasoline prices better start going down a lot faster than what I’m seeing!” he wrote.
Speaking with reporters in the Oval Office that same day, Mr. Trump singled out Exxon Mobil, Chevron, Shell, and BP, saying “a lot of” companies are not passing lower crude oil prices on to consumers. “We are not seeing anything at the pump by comparison to what it should be. We should be, in my opinion, at $2.25 right now at the pump, and we’re higher than that. And we are doing a big investigation of it,” he said.
The president added an “oil gush” of 19 million barrels “came out” June 22: “That is a flood,” he said, “and they should be much lower, the gasoline prices.”
Chevron and Exxon Mobil are poised to report second-quarter earnings more than triple their first-quarter results, which would mark their strongest quarterly performance since 2022, Reuters reported Friday.
The agencies emphasized existing federal antitrust laws “govern the trade of oil and fuel no differently than any other market” while encouraging state officials to pursue violations under their own consumer protection and competition statutes. “Companies and individuals who seek to unlawfully exploit our nation’s citizens will face federal investigation, civil liability, and criminal prosecution,” the letter states.
The document does not identify any specific oil company, gasoline retailer, or distributor as a target of investigation; nor does it allege any company has violated federal or state law. Instead, it asks state attorneys general to examine whether market participants have engaged in misconduct resulting in unjustified increases in gasoline prices and to use their own legal authorities to investigate and prosecute price gouging or other unlawful business practices where state law permits.
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