DOJ asks states to examine possible gas price gouging

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1–2 minutes
close up photo gasoline fuel pump

Summary

Federal officials asked states to help examine whether gas prices were unlawfully inflated during recent oil market volatility.

Why this matters

Gas prices affect household budgets and commuting costs. The investigations could determine whether higher prices reflected market disruption alone or possible violations of antitrust or consumer-protection laws.

Justice Department officials asked state attorneys general to help investigate whether companies or individuals may be driving gas prices above levels justified by market conditions.

According to UPI, a July 3 letter from Associate Attorney General Stanley Woodward Jr. and Federal Trade Commission Chairman Andrew Ferguson urged states to work with federal investigators examining possible gas price gouging.

The letter said swings in crude oil prices do not excuse violations of antitrust or consumer-protection laws. Federal officials asked states to examine whether retail gas prices were being manipulated or whether competitors were coordinating to keep prices artificially high.

The request followed weeks of disruption in global energy markets. Gas prices rose after U.S. military conflict involving Israel and Iran affected traffic through the Strait of Hormuz, a major route for global fuel shipments.

After passage through the strait resumed, President Donald Trump said prices were not falling quickly enough. On Truth Social, he wrote that customers were being “gouged” and said: “Gasoline prices better start going down a lot faster than what I’m seeing!”

UPI also cited AAA data showing the national average price for regular gas was $3.82 a gallon on July 3, compared with $4.26 a month earlier and $3.16 a year earlier.

“Recent volatility in crude oil prices does not suspend either the antitrust laws or state consumer protection laws,” the letter said.

Consumers can limit the effect of price swings by comparing nearby station prices, using loyalty discounts, combining errands, and keeping tires properly inflated. Some households may also reduce gasoline use by taking public transit, carpooling, or considering an electric vehicle.

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