Baker & Hostetler LLP
07/14/2026 | Press release | Distributed by Public on 07/15/2026 11:55
Federal Antitrust Enforcers Urge States to Investigate Gasoline Prices
Key Takeaways
DOJ and FTC leadership sent a letter to state attorneys general urging them to investigate potential antitrust issues around rising gas prices in their states.
The letter is consistent with continued state and federal antitrust focus on the energy sector more broadly and on shifts in consumer prices.
The letter is a recent example of federal agencies seeking to align their antitrust priorities with state enforcers after occasional signs of divergence.
On July 3, the U.S. Department of Justice's (DOJ) Antitrust Division and the Federal Trade Commission (FTC) sent a joint letter to state attorneys general encouraging them to join the federal government in investigating whether unlawful conduct is contributing to "high gas prices." The letter states that "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." DOJ Associate Attorney General Stanley Woodward and FTC Chairman Andrew Ferguson jointly penned the letter, urging states to look for evidence of competitive issues, such as price fixing and coordinated supply restrictions, as well as potential violations of consumer protection and price-gouging statutes.
Because retail gasoline markets are inherently local, state attorneys general may possess more specific insights into gas pricing or consumer protection issues in their home jurisdictions than federal regulators would have. This means that coordinated state-federal investigations may focus on specific regions and generate more extensive factual records than federal-only investigations. The agencies' letter is the latest in several antitrust-focused inquiries into the retail gasoline industry, including a recently filed private putative class action complaint in the Eastern District of California asserting price-fixing claims around competing gas station companies' use of a common fuel pricing software product.
At a high level, the agencies' letter reflects escalating federal scrutiny of fuel pricing, but it does not identify companies or geographic areas that regulators are investigating, suggesting that federal inquiries, if any, remain nascent. The letter also includes a social media post from the President, signaling a broad intent to align federal and state investigative efforts directionally with executive priorities. The letter's focus on fuel pricing reflects the federal antitrust agencies' continued scrutiny of the broader energy industry, including DOJ's December 2025 challenge to the merger of two major electric power companies and the agencies' May 2025 joint statement of interest in the Texas Attorney General's lawsuit against institutional investors alleging unlawful coordination relating to coal power. States have already shown their willingness to bring antitrust enforcement actions in the energy industry; in January 2026, Michigan sued several fossil fuel companies, alleging a conspiracy to forestall competition from renewable energy companies.
Additionally, the letter comes on the heels of some recent high-profile conflicting strategies in antitrust enforcement between the states and the federal government, most notably the recent litigation against Live Nation and Ticketmaster, in which federal enforcers settled during trial while state attorneys general continued on, eventually obtaining a jury verdict against the companies. Conversely, here, the letter invites state attorneys general to jointly investigate-and potentially enforce-executive priorities relating to lowering gas prices for consumers. Retail gas companies may also see an uptick in private class action litigation in this area.
Ultimately, the federal agencies' letter appears to be closer to a joint-enforcement policy presentation than a specific warning shot to retail gasoline companies in any particular region. However, given the importance of gas prices to consumers and the federal agencies' stated willingness to scrutinize how those prices are set, state attorneys general may take interest. BakerHostetler's Antitrust and State Attorneys General teams have extensive experience navigating joint state-federal antitrust and consumer protection investigations, as well as retail fuel industry expertise. Please feel free to contact any of our experienced professionals with any questions about this development.
Baker & Hostetler LLP published this content on July 14, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on July 15, 2026 at 17:55 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]