The U.S. Department of Justice and the Federal Trade Commission have called on state attorneys general to increase investigations into gasoline pricing practices, signaling a broader enforcement push against potential anticompetitive conduct in petroleum markets as fuel prices remain elevated despite declines in crude oil costs.
According to a July 10 analysis published by law firm Morgan Lewis, federal officials are encouraging states to use their own antitrust, consumer protection and price-gouging authorities to examine whether unlawful conduct has contributed to persistently high retail fuel prices.
The initiative follows a July 3 letter from the DOJ’s Antitrust Division and the FTC urging state enforcement agencies to coordinate with federal authorities and pursue actions where evidence suggests market manipulation, collusion or other illegal pricing behavior.
In a statement accompanying the letter, Associate Attorney General Stanley Woodward said affordable energy remains critical to the U.S. economy and that federal authorities would use all available enforcement tools to address unlawful market conduct.
Federal regulators said they are closely monitoring petroleum markets as crude oil prices have retreated from recent highs while gasoline prices in some regions have remained comparatively elevated.
The latest scrutiny comes after President Donald Trump publicly questioned why lower crude prices had not translated into sharper declines at the pump. The administration has argued that falling input costs should result in more immediate consumer relief.
Lawmakers have also raised concerns. Morgan Lewis reported that Senators Elizabeth Warren and Sheldon Whitehouse sent letters to major oil companies in June seeking explanations for what they described as a mismatch between declining oil prices and gasoline costs faced by consumers.
The DOJ and FTC letter specifically highlights possible violations involving price-fixing agreements, market allocation arrangements and deceptive business practices. Federal antitrust law prohibits agreements among competitors that restrain competition, while state authorities often possess additional powers under consumer protection statutes and price-gouging laws.
Related: DOJ, FTC Urge States to Help Investigate Potential Oil Market Manipulation
The agencies’ appeal to state attorneys general could lead to parallel investigations across multiple jurisdictions, increasing legal and regulatory exposure for fuel retailers and other participants in petroleum supply chains.
State governments have increasingly taken a more active role in competition enforcement in recent years, particularly in areas affecting household affordability. According to Morgan Lewis, several states have expanded initiatives aimed at investigating practices that may contribute to rising costs for consumers, including prices for fuel, groceries, housing and utilities.
California has been among the more active states in fuel market oversight. The state previously reached a $50 million settlement related to allegations that fuel-trading firms manipulated gasoline spot-market prices and maintains a consumer complaint portal for fuel pricing concerns. Florida authorities have also said they monitor gasoline markets in coordination with federal agencies.
The FTC has previously intervened in fuel-sector transactions on competition grounds. In several recent merger reviews, the agency required divestitures of retail fuel assets to address concerns that consolidation could reduce competition and lead to higher prices in local markets.
Antitrust experts have long noted that petroleum markets can be vulnerable to competitive concerns because of concentrated refining capacity in certain regions, complex supply chains and significant barriers to entry. While elevated gasoline prices alone do not establish unlawful conduct, regulators have indicated that they are paying closer attention to whether pricing behavior reflects legitimate market conditions or potentially illegal coordination.
The DOJ’s recent enforcement activity also underscores broader federal interest in pricing-related competition issues. The Antitrust Division has pursued cases involving alleged benchmark manipulation and information-sharing arrangements in other sectors, emphasizing concerns about conduct that may artificially inflate prices.
The federal agencies are encouraging consumers and market participants to report suspected antitrust violations through existing complaint channels and whistleblower programs.
No specific companies were identified in the latest federal appeal to state attorneys general, and neither the DOJ nor the FTC announced any new enforcement actions alongside the letter. However, officials indicated that state and federal authorities will continue monitoring petroleum markets and evaluating whether further investigations or legal actions are warranted.
Source: Morgan Lewis
