President Joe Biden has requested the Federal Trade Commission to investigate whether or not “illegal conduct” is to blame for surging gas prices.
“The bottom line is this: gasoline prices at the pump remain high, even though oil and gas companies’ costs are declining. The Federal Trade Commission has authority to consider whether illegal conduct is costing families at the pump. I believe you should do so immediately,” Biden wrote in a letter to Federal Trade Commission Chair Lina Khan.
The American Automotive Association reports that fuel prices have are averaging nearly $3.40 per gallon as the holiday season nears. If gas prices remain high, it could pose a problem for the Biden administration. A recent poll found that nearly three-quarters of the country rate the economy negatively. Moreover, 38% of nation says the economy is in “poor” condition.
Biden also notes that there may be a gap between the price of unfinished gasoline and the price of gasoline at the pump. ABC News reports that the price of unfinished gas decreased by 5% last month and increased by 3% at the pump.
“The unexplained large gap between the price of unfinished gasoline and the average price at the pump is well above the pre-pandemic average. Meanwhile, the largest oil and gas companies in America are generating significant profits off higher energy prices,” the letter adds.
“I do not accept hard working Americans are paying more for gas because of anti-competitive or otherwise potentially illegal conduct. I therefore ask the commission to further examine what is happening with oil and gas markets, and that you bring all the commission’s tools to bear if you uncover any wrongdoing.”
