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DOJ, FTC Urge States to Help Investigate Potential Oil Market Manipulation

By  |  July 4, 2026
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Federal antitrust officials said they are closely watching U.S. oil markets for signs of illegal coordination or monopolistic conduct, signaling heightened regulatory attention on fuel pricing as consumers continue to face concerns about gasoline costs.

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    According to CBS News, the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) sent a letter Friday to state attorneys general stating that federal regulators are monitoring oil markets for evidence of price-fixing, market allocation, monopolization, or other conduct that could violate antitrust laws.

    The letter was signed by Associate Attorney General Stanley Woodward, who oversees the DOJ’s Antitrust Division, and FTC Chairman Andrew Ferguson. The officials said coordination between federal and state enforcement agencies could strengthen oversight of the energy sector and help identify unlawful conduct affecting fuel prices.

    Federal officials also encouraged states to use their own legal authority to investigate potential price gouging where applicable. While the federal government generally lacks a nationwide price-gouging statute, many states maintain consumer protection laws that prohibit excessive pricing during emergencies or under specific market conditions. According to CBS News, the letter urged state attorneys general to evaluate whether fuel suppliers or retailers may have violated those laws.

    The agencies emphasized that unlawful agreements among competitors to fix prices or restrict competition remain prohibited under federal antitrust law. The DOJ and FTC said they would continue monitoring market activity for evidence of conduct that harms competition or artificially increases costs for consumers.

    Read more: DOJ Says Michigan’s Antitrust Lawsuit Against Major Oil Companies Faces Legal Hurdles

    The announcement comes as competition issues within the oil industry have drawn growing attention from federal regulators and lawmakers. In recent years, antitrust officials have examined allegations that coordination among producers could reduce output or influence prices. One of the highest-profile reviews occurred during the proposed acquisition of Pioneer Natural Resources by Exxon Mobil, when the FTC alleged former Pioneer chief executive Scott Sheffield attempted to coordinate production discussions with representatives of the Organization of the Petroleum Exporting Countries (OPEC). Although Exxon ultimately completed the acquisition, the FTC barred Sheffield from joining the company’s board as part of a consent order.

    Congress has also examined whether domestic producers communicated or coordinated with OPEC or its member countries in ways that could artificially influence oil prices. In 2024, the U.S. Senate Budget Committee launched an inquiry seeking information from several major oil companies regarding potential contacts with OPEC officials and whether any actions may have affected production or pricing decisions.

    Under U.S. antitrust law, agreements among competitors to fix prices, limit production, or divide markets are generally considered per se violations of the Sherman Act. The DOJ has authority to pursue criminal antitrust cases, while the FTC enforces civil competition laws and investigates unfair methods of competition. State attorneys general also possess independent authority under state antitrust and consumer protection statutes to investigate and prosecute violations within their jurisdictions.

    Source: CBS News