Pressure on Oil Companies Mounts: The Department of Justice Calls for an Investigation into Possible Gasoline Price Gouging

The Department of Justice urged state officials on Friday to investigate whether oil companies or fuel distributors are illegally keeping gas prices at artificially high levels, following complaints from President Donald Trump that prices at gas stations have not fallen as quickly as the cost of crude oil. “We urge state law enforcers to join us in investigating illegal practices. Recent volatility in crude oil prices does not suspend either the antitrust laws or state consumer protection laws, and it does not authorize companies to manipulate retail prices or collude with their competitors,” wrote Deputy Attorney General Stanley Woodward Jr. and Federal Trade Commission (FTC) Chairman Andrew Ferguson in a letter addressed to state attorneys general.

Although crude oil prices have fallen significantly since the United States and Iran reached an interim peace agreement, drivers are still paying more for gas than they were before the conflict began earlier this year. As of Friday afternoon, the national average price for a gallon of regular gasoline stood at $3.82, while drivers in both Hawaii and several states on the West Coast continued to pay more than $5 per gallon.

Officials noted that more than 36 states, several U.S. territories, and the District of Columbia have laws prohibiting excessive price increases for essential goods and services during emergencies or disasters, providing additional legal tools to investigate possible cases of price gouging. Gas prices skyrocketed to near-record highs earlier this year after the prolonged closure of the Strait of Hormuz disrupted global oil supplies for more than three months.