Biden says gas companies may be guilty of 'illegal conduct' and ripping off Americans to pump up profits

A woman holds a pump nozzle in her hand at a gas station and refuels a car.
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Biden asked the FTC to investigate potential "illegal conduct" at oil and gas companies.
He wrote that as prices at the pump continue to rise, major players in the industry are making profits.
Gas prices are at a seven-year high right now as supply for gas can't keep up with demand.

Gas prices in the US have hit a seven-year high due to increased demand and limited supply — and President Joe Biden wants to make sure the companies raising prices on Americans aren't engaging in bad behavior.

On Wednesday, Biden sent a letter to Federal Trade Commission (FTC) Chair Lina Khan requesting she look into the "mounting evidence of anti-consumer behavior by oil and gas companies." He wrote in the letter that gas prices have continued to rise even as fuel costs have declined, and the largest companies in the industry are generating significant profits off of the increased prices at the pump.

"The bottom line is this: gasoline prices at the pump remain high, even though oil-and-gas companies' costs are declining," Biden wrote. "The FTC has authority to consider whether illegal conduct is costing families at the pump. I believe you should do so immediately."

—Ronald Klain (@WHCOS) November 17, 2021

As Insider's Andy Kiersz reported, gas prices across the US hit their highest level since 2014 in October, with the average price per gallon amounting to $3.41 on November 8. This spike could come down to Americans traveling by car more often during the pandemic, constraining gas supply, and domestic and global oil producers are only moderately increasing supply.

Still, as Biden wrote in the letter, the largest companies in the industry — ExxonMobil and Chevron — have doubled their net income since 2019, contributing to evidence of the "anti-consumer behavior" the president referenced.

This is Biden's latest effort to take on rising prices and inflation that are hurting Americans' wallets across the country. In August, Biden asked the FTC to monitor potential illegal conduct in the US' gasoline market, and he also called on the Organization of the Petroleum Exporting Countries (OPEC) to boost output to keep up with increased consumer demand.

"I do not accept hard-working Americans paying more for gas because of anti-competitive or otherwise potentially illegal conduct," Biden wrote. "I therefore ask that the Commission further examine what is happening with oil and gas markets, and that you bring all of the Commission's tools to bear of you uncover any wrongdoing."

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