The Justice Department on Friday urged state attorneys general to deploy every legal tool at their disposal to investigate whether oil companies and individuals are deliberately keeping gas prices artificially high, as President Trump grows increasingly frustrated with the slow pace of declines at the pump.
Associate Attorney General Stanley Woodward Jr. and Federal Trade Commission Chair Andrew Ferguson sent a letter to state law enforcement officials on July 3, warning that the agencies are “closely monitoring petroleum markets” for potential violations of federal antitrust laws. “Recent volatility in crude oil prices does not suspend either the antitrust laws or state consumer protection laws,” they wrote, “and it does not authorize companies to manipulate retail prices or collude with their competitors.”
The push comes as Trump has taken to social media to blast gasoline retailers, demanding immediate price cuts. In a Monday evening post on Truth Social, he wrote: “Gasoline Retailers must get their Prices down, IMMEDIATELY!” That followed his announcement that he had directed federal prosecutors to “immediately start looking into” whether oil companies were rigging the market. “The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil,” he argued, accusing firms of gouging customers.
Gas prices spiked to near-record levels this spring after the prolonged closure of the Strait of Hormuz choked off global oil supply for more than three-and-a-half months. Roughly one-fifth of the world’s oil passes through that Persian Gulf corridor during peacetime. While crude prices have eased significantly since an interim peace deal was signed, Americans are still paying more than before the war began in late February. The national average for a gallon of gas stood at $3.82 as of Friday, with drivers in some West Coast states and Hawaii still facing over $5 per gallon.
The president’s poll numbers have taken a sharp hit in recent months as voters’ economic anxieties mount, making gas prices a political vulnerability. Trump’s frustration is evident in his public demands: “Gasoline prices better start going down a lot faster than what I’m seeing!”
Chevron Chief Financial Officer Eimear Bonner pushed back on the notion of a quick fix. In an interview with CNBC last week, she acknowledged consumer pain but cautioned that price adjustments take time. “There is a lag between oil prices and reductions in oil prices and when that shows up at the pump,” Bonner said on “Squawk Box Europe.” She added that the company expects prices to come down “as things continue to normalize.”
More than three dozen U.S. states, territories, and the District of Columbia have laws specifically barring price gouging on essential goods during disasters or emergencies, according to the National Conference of State Legislatures. The Justice Department and FTC are now leaning on those statutes as part of a broader effort to ensure that falling crude prices translate into relief for consumers.
The investigation into potential gas price manipulation also aligns with broader scrutiny of corporate pricing practices. Meanwhile, the political stakes are rising as Trump pressures gas stations to cut prices faster, warning of “big problems” if they don’t comply. For a deeper look at the president’s ongoing campaign on fuel costs, see our analysis of Trump's demands for faster price drops at the pump.
