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The U.S. Department of Justice leads investigation into high gasoline prices, with a complete record of Trump's pressure and oil companies' responses(1) The Department of Justice on Friday called on all states to “use every available tool” to investigate whether oil companies and individuals have intentionally driven up gasoline prices. This move comes as President Trump complains that oil prices are falling too slowly. (2) In a letter to state attorneys general on July 3, Deputy Attorney General Stanley Woodward Jr. and Federal Trade Commission Chairman Andrew Ferguson stated that the two agencies are “closely monitoring the oil market” to identify possible violations of federal antitrust laws. (3) The letter urges state law enforcement agencies to participate in the investigation and emphasizes: “Recent fluctuations in crude oil prices do not exempt anyone from the application of antitrust or state consumer protection laws, nor do they allow companies to manipulate retail prices or collude with competitors.” (4) According to data from the National Conference of State Legislatures, more than 30 U.S. states, territories, and the District of Columbia have specific laws prohibiting excessive price increases for essential goods or services during disasters or emergencies. (5) This spring, the long-term closure of the Strait of Hormuz led to a global oil supply disruption lasting more than three and a half months, causing gasoline prices to surge close to historic highs. In peacetime, about one-fifth of the world’s oil is transported through this Persian Gulf trading corridor. (6) Although crude oil prices fell significantly within weeks of the signing of a temporary peace agreement, U.S. gas station retail prices remained higher than prewar levels at the end of February. As of Friday afternoon, the national average price of regular gasoline was $3.82 per gallon, with drivers in some West Coast states and Hawaii still paying over $5 per gallon. (7) The slow pace of price reductions has frustrated Trump, whose poll numbers have suffered in recent months due to growing voter economic anxiety. On Monday night, he posted on Truth Social: “Gasoline retailers must cut prices immediately!” (8) Days earlier, the president had already announced instructions for federal prosecutors “to immediately begin investigating” whether oil companies were manipulating prices, accusing major oil companies of not cutting retail prices in line with the drop in crude oil prices, suggesting that consumers are being “ripped off,” and warning that “gasoline prices had better come down much faster than I’m seeing.” (9) Chevron Chief Financial Officer Eimear Bonner responded to CNBC last week that it takes time for prices to return to normal. She said on the program that the company is very sympathetic to consumers, but there is a lag between oil price decreases and price reductions at the pump, and that she expects prices will eventually fall as conditions continue to normalize.
