The Federal Trade Commission (FTC) plans to Ramp-Up Enforcement of Anticompetitive Practices by Oil and Gas Companies, as the Biden Administration presses for ways to alleviate unusually High Fuel Prices for Motorists.
FTC Chair, Lina M. Khan, told White House National Economic Council (NEC) Director, Brian Deese in a memo, last week, that she is directing Regulatory Staff, to ensure that the Consolidation of Large Oil and Gas Firms is not leading to Higher Prices through “collusive practices.” Khan also vowed additional Steps to “deter unlawful mergers” in the Oil and Gas Industry and Investigate whether “the power imbalance favoring large national chains” force Fuel Station Franchisees to Sell Gasoline at Higher Prices.
The Directive comes as part of the White House’s broader Antitrust Push, aimed at deterring Corporate Consolidation in a handful of Major Economic Sectors.
Khan, an Antitrust Crusader, was tapped by Biden for the powerful FTC position in June. The Administration has faced Political Attacks from Republicans over High Prices, particularly at the Pump , and sought to Demonstrate to Voters that it is trying to cool Inflationary Trends.
Gas Prices have risen above $3 and are at their Highest level since 2014, according to Industry Analysts, as part of a broader Increase in Prices that the Administration is eager to Reverse.
Prices could Increase further as Hurricane Ida slams into Louisiana, a key Energy Producer.
In July, Biden signed an Executive Order with 72 separate Directives calling on Federal Agencies to Challenge the Business Practices of America’s enormous: Agricultural, Health Care, Manufacturing, and Technology, Firms while also aiming to shake up Smaller Sectors dominated by only a Handful of Companies, such as the Hearing Aid Industry.
White House Officials have characterized the effort as a Key part of their Strategy to Lower Consumer Prices.
Deese is also the Chair of a New Competition Council created by the Executive Order.
Khan’s Statement follows a Controversial $21 Billion Merger between 7-Eleven and Speedway, a Convenience Store with Thousands of Stores across the Country. FTC Members appointed by Democrats have raised Concerns about the Impact of that Transaction, saying it raises “significant competitive concerns in hundreds of local retail gasoline and diesel fuel markets across the country.”
“What we see is shortages and price gouging everywhere, and what the FTC is going to try to do is stop that,” said Matt Stoller, an Antitrust Expert. “If you own most of the gas stations in an area, you can control the price or collude with others to control the price. Preventing that collusion will reduce prices.”
Conservatives and some Economists are Skeptical that additional Antitrust Enforcement will relieve Price Pressures at the Pump, arguing that Industry Consolidation can Increase Efficiencies that drive Down Costs.
Neil Bradley, Chief Policy Officer for the U.S. Chamber of Commerce, previously accused Biden of taking a “government-knows-best approach” with the Order.
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