DOJ and FTC press states to target any illegal activity contributing to high gas prices

• The AAA national average for regular gas stands at $3.823 as of July 3, down from $4.261 a month ago, while crude oil has fallen to $68 per barrel
• Trump accused retailers of 'gouging' consumers by withholding price cuts and warned 'big problems lie ahead' if gasoline prices don't drop faster
• Federal agencies are monitoring petroleum markets and encouraging states to investigate potential collusion, price manipulation, and violations of state-specific price gouging laws

Summary: DOJ and FTC Press States to Target Illegal Activity Contributing to High Gas Prices

The Department of Justice (DOJ) and Federal Trade Commission (FTC) are urging state attorneys general to investigate and prosecute illegal activities contributing to elevated fuel costs for American consumers. The federal agencies are responding to President Trump's directive to examine potential price gouging by oil companies.

Key Issue: Despite crude oil prices dropping significantly to $68 per barrel, retail gasoline prices are not declining at a comparable rate. President Trump stated in a June 24 Truth Social post that oil companies are withholding price cuts from consumers and instructed the DOJ to investigate immediately.

Current Market Data:

• AAA national average gas price: $3.823 per gallon (as of July 3)
• Previous month average: $4.261 per gallon
• Current crude oil: $68 per barrel and declining

Regulatory Action: The DOJ and FTC letter emphasizes that market volatility doesn't suspend antitrust or consumer protection laws. Federal officials are encouraging states to utilize all available enforcement tools, including state-specific price gouging laws, antitrust statutes, and consumer protection regulations.

Background: Gasoline prices spiked following U.S. military action against Iran earlier this year but have been declining recently. However, authorities assert retail prices aren't falling fast enough relative to crude oil price decreases.

Market Implications: The increased scrutiny on oil companies and retailers signals potential regulatory enforcement actions ahead. Companies failing to adjust prices accordingly face warnings of "big problems" and accountability for market manipulation. This enforcement push aims to ensure affordable energy prices to support economic growth while protecting consumers from anticompetitive behavior.