The U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) have urged state attorneys general to investigate whether oil companies are manipulating gasoline prices or engaging in anticompetitive practices. In a joint letter sent Friday, the agencies encouraged states to launch investigations under their own antitrust and consumer protection laws, citing concerns about potential price gouging and collusion.
Immediate Action & Core Facts
The DOJ and FTC emphasized that recent volatility in crude oil prices does not exempt companies from adhering to antitrust laws. They warned that market disruptions should not be used as cover for unlawful conduct, including price manipulation or collusion. The agencies also noted that while they lack authority over price gouging, many states have laws targeting such practices during emergencies.
Deeper Dive & Context
The letter follows a June 24 post by former President Donald Trump on Truth Social, where he accused major oil companies of failing to pass along declining crude oil prices to consumers. Trump directed the DOJ to investigate the matter, and the agencies included his post in their letter to state attorneys general. Associate Attorney General Stanley Woodward stated that the DOJ is committed to using all available tools to hold companies accountable for unlawful market manipulation.
The agencies also highlighted that states could assist in policing price gouging, an area where federal enforcement authority is limited. The letter underscores the DOJ and FTC's commitment to monitoring petroleum markets and ensuring compliance with antitrust laws.