Democrats urge DOJ to investigate oil industry price-fixing allegations

A coalition of Democratic representatives in the U.S. House of Representatives has asked the Justice Department to investigate allegations of antitrust behavior by U.S. oil producers and the Organization of the Petroleum Exporting Countries (OPEC). ).

In a letter to Attorney General Merrick Garland on Tuesday, lawmakers accused Exxon Mobil Corp. and Chevron Corp., the two largest U.S. oil companies, to conspire to keep fuel prices high, thereby inflating their profits at the expense of American consumers.

The request for an investigation was prompted by a Federal Trade Commission (FTC) complaint filed in May, which accused the former CEO of Pioneer Resources of orchestrating a scheme to coordinate prices between U.S. oil companies and foreign producers.

The letter, led by Rep. Jerrold Nadler, the ranking Democrat on the House Judiciary Committee, points to the substantial profits recorded by Exxon Mobil and Chevron last year as further evidence of potential anticompetitive practices.

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“Major oil producers appear to be colluding with each other and with foreign cartels to keep prices high, thereby increasing their profits at the expense of American consumers,” the lawmakers said in their letter. They urged the Justice Department to use its full authority to investigate and, if necessary, prosecute such conduct.

The letter highlights concerns that, rather than passing on their profits to consumers by reducing prices, Exxon and Chevron have profited from keeping fuel prices high. “But apparently, instead of passing these profits on to consumers in the form of cheaper products, the oil giants have lined their pockets while conspiring to keep prices high,” the lawmakers wrote.

Exxon Mobil and Chevron did not immediately respond to requests for comment. Likewise, OPEC has not yet issued a statement regarding these allegations.

Source: Reuters