Tallahassee, Fla. – Today, Florida Agriculture Commissioner Nikki Fried wrote to Florida Attorney General Ashley Moody, requesting that the Attorney General investigate any anti-competitive, potentially illegal activity by oil and gas companies amidst high gasoline prices. Earlier today, President Joe Biden wrote to Federal Trade Commission Chair Lina Khan, requesting that the FTC investigate “whether the industry is illegally and artificially keeping gasoline prices high” amidst “mounting evidence of anti-consumer behavior.”
With gas prices currently near a seven-year high, oil and gas companies are seeing record-high profits despite the declining cost of unfinished gasoline. According to the President’s letter, oil and gas companies are planning on billions of dollars in stock buybacks and dividend hikes, while consumer gas prices rise and refined fuel costs decrease. The price of oil is down more than five percent this month, while gas prices have increased three percent this month.
In her letter, Commissioner Fried asks the Florida Attorney General to investigate the issue under the Florida Antitrust Act of 1980. Since September, the Division of Consumer Services within the Florida Department of Agriculture and Consumer Services has received 80 consumer complaints on gasoline pricing.
Commissioner Fried’s letter reads as follows:
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The Honorable Ashley Moody
Attorney General of Florida
The Capitol
400 South Monroe Street
Tallahassee, FL 32399
November 17, 2021
Attorney General Moody,
I write today regarding, as noted by President Joe Biden, “mounting evidence of anti-consumer behavior by oil and gas companies” that is contributing to current high gasoline prices.
As the President wrote today to Federal Trade Commission Chair Lina Khan, oil and gas companies are enjoying increased profits while American consumers are paying more at the gas pump, despite unfinished gasoline prices declining. Floridians are acutely aware of this, with gasoline prices exceeding the national average in several areas of Florida including Palm Beach, Jefferson, and Washington Counties.
According to the President’s letter, “the two largest oil and gas companies in the United States are on track to nearly double their net income over 2019 – the last full year before the pandemic,” and plan to “engage in billions of dollars of stock buybacks and dividends,” while “prices at the pump have continued to rise, even as refined fuel costs go down and industry profits go up.”
As Florida’s consumer protection agency, my Division of Consumer Services has received eighty consumer complaints in the past two months about gasoline prices. As you may know, our agency does not have statutory authority to investigate this matter. However, under the Florida Antitrust Act of 1980, the Attorney General has broad authority to investigate potentially illegal activity regarding the price of commodities, which includes gasoline.
I request that you investigate under Section 542, Florida Statutes, any anti-competitive and potentially illegal conduct in gasoline pricing and sales in the State of Florida. Further, I encourage you to work with the Federal Trade Commission in their investigation into anti-consumer, anti-free market, and potentially illegal activity by oil and gas companies.
We cannot expect Floridians to bear the burden of higher gas prices while oil and gas companies line their pockets with record-high profits, despite their costs declining. I hope that you will take all appropriate action to join me in protecting Florida’s consumers at the gas pump.
Sincerely,
Nicole Fried
Florida Commissioner of Agriculture
