Full Breakdown
DOJ, FTC Urge States to Probe Gasoline Price Gouging
7/4/2026, 12:53:07 PM
Federal Call to Action
On Friday the DOJ and FTC sent a letter to state attorneys general urging investigations of illegal conduct that may be inflating gasoline prices. Signed by Associate Attorney General Stanley Woodward Jr. and FTC Chair Andrew Ferguson, the letter cites President Donald Trump’s Truth Social posts demanding price cuts and accusing oil firms of gouging consumers.
Background and Context
Gasoline prices spiked after the United States and Iran escalated conflict, disrupting tanker traffic through the Strait of Hormuz. Since then, Brent and WTI crude have fallen below $70 per barrel, yet pump prices have declined only modestly. President Trump has repeatedly argued that lower crude costs should quickly lower consumer prices.
Data and Statistics
The AAA reports a national average of $3.823 per gallon for gasoline on July 3, down from $4.261 a month earlier. Prices in Hawaii and several West-Coast states stay above $5 per gallon. Crude oil trades around $68 per barrel. More than 36 states, several U.S. territories and the District of Columbia have price-gouging statutes for emergencies.
Official Statements & Responses
DOJ/FTC letter says “volatility in crude oil prices does not suspend antitrust laws or state consumer protection laws, and it does not authorize companies to manipulate retail prices or collude with their competitors.” Woodward added Antitrust Division will “use all available tools to ensure that companies are held accountable for unlawfully manipulating the market.” Agencies urged states to apply emergency-pricing statutes.
Criticism & Opposition
The petroleum industry argues that gasoline prices reflect refining costs, transportation, taxes, wholesale inventories and local competition, creating a lag between crude-oil price changes and pump prices. ExxonMobil, Chevron, Shell and BP cite these factors in response to price-manipulation accusations.
Conflicting Reports & Gaps
Crude oil has fallen sharply, yet retail gasoline prices have declined only modestly, and no public evidence of collusion or price-fixing has been presented. The extent to which any illegal conduct influences pump prices therefore remains uncertain.
Verbatim Quotes
- “Although crude oil prices are now dropping rapidly, far too much of that price cut is being withheld from Americans when they pay for gasoline,” — Stanley Woodward Jr., Associate Attorney General (letter)
- “They’re too high considering that Oil is now at $68 a Barrel, and heading south.” — Donald Trump, Truth Social post
- “Business may not use market volatility as cover for anticompetitive practices, fraud, or any other lawlessness that harms Americans,” — DOJ/FTC letter
What’s Next
The DOJ and FTC said they will continue monitoring petroleum markets and will provide resources to state investigators. Several states have already begun reviews of their price-gouging statutes, and joint federal-state inquiries are expected in the coming weeks.
