Associate Attorney General Stanley Woodward Jr. and Federal Trade Commission Chair Andrew Ferguson sent a letter to state attorneys general on Friday urging them to use all available tools to investigate whether oil companies and individuals are intentionally inflating gas prices at the pump.
The move comes as President Trump has publicly complained that gasoline prices have not fallen quickly enough despite crude oil markets stabilizing. The administration has signaled frustration with oil majors even as overall energy costs have declined from recent highs seen in 2022.
What the Right Is Saying
Conservative critics say the investigation amounts to political pressure on an industry that operates in volatile global markets. Senator John Cornyn of Texas, a senior Republican on the Senate Energy Committee, told reporters that oil companies are being singled out despite operating in one of the most competitive industries in America.
The American Petroleum Institute, the industry's largest trade group, pushed back on the investigation request. Crude oil prices and retail gasoline prices are set by global supply and demand dynamics, API spokesperson Sarah Howell said. Any suggestion otherwise misrepresents how energy markets function.
Free-market economists argue that price controls and antitrust investigations risk chilling investment in domestic production at a time when the administration has prioritized American energy dominance. Heritage Foundation energy policy scholar Nick Zaiac wrote that targeting oil companies for market prices they did not set risks creating regulatory uncertainty that could raise costs for consumers long-term.
What the Left Is Saying
Democratic lawmakers and consumer advocacy groups have long called for stronger federal oversight of oil company pricing practices. Senator Elizabeth Warren of Massachusetts wrote last year that major oil companies report record profits while American families struggle at the pump, arguing that antitrust enforcement has been inadequate.
Consumer Federation of America Executive Director Jack Gillis said the DOJ letter represents a meaningful shift in federal posture toward the energy industry. This is exactly the kind of coordination between federal and state authorities that can uncover anti-competitive behavior, Gillis said in a statement. The FTC has historically struggled to bring cases against oil majors under existing antitrust frameworks.
Progressive economists note that while crude oil prices have declined significantly from 2022 peaks, retail gasoline prices have not fallen at comparable rates, a pattern they argue warrants scrutiny.
What the Numbers Show
According to Energy Information Administration data, the national average price for regular gasoline was $3.21 per gallon as of late June 2026, down from a peak of $5.02 in June 2022 but still elevated compared to pre-pandemic levels around $2.40 in January 2020.
Crude oil futures have traded between $65 and $85 per barrel over the past year after spiking above $120 in early 2022. The spread between crude prices and retail gasoline prices, often called the refinement margin, has drawn scrutiny from economists who study energy markets.
ExxonMobil reported $36 billion in net income for fiscal year 2025. Chevron reported $25.3 billion in annual profits that same year. Both figures represent declines from record highs during the 2022 energy price surge but remain well above historical averages.
GasBuddy data shows retail gasoline prices have decreased approximately 18 cents per gallon over the past 60 days nationally, though regional variations remain significant with some states averaging above $4.00 per gallon.
The Bottom Line
The DOJ's coordination with state attorneys general marks a notable escalation in federal scrutiny of energy pricing practices. Whether this leads to formal enforcement actions remains unclear, as antitrust cases against large oil companies have historically faced high evidentiary thresholds proving intentional price manipulation versus legitimate market responses.
State attorneys general in California, Minnesota, and New York have previously launched their own investigations into gas pricing but have struggled to bring successful prosecutions under existing state laws. The coordinated federal approach may provide additional investigative resources and legal frameworks.
Oil industry analysts say the investigation is unlikely to result in immediate changes at the pump. Markets will continue to be driven by OPEC production decisions, global demand trends, and refinery capacity, they argue. Any enforcement action would likely take years to work through the court system.