Padilla, Colleagues Introduce Bill to Crack Down on Oil Market Manipulation and Protect Consumers As Gas Prices Climb

California gas prices are up more than $1.50 per gallon since the start of Trump's war with Iran

WASHINGTON, D.C. - As Californians face rising gas prices driven by the Trump Administration's ongoing war in Iran, U.S. Senator Alex Padilla (D-Calif.) joined Senators Maria Cantwell (D-Wash.) and Ron Wyden (D-Ore.) in introducing the Transportation Fuel Market Transparency Act to crack down on petroleum market manipulation and protect consumers from unjustified price spikes at the pump.

The bill would create a new Transportation Fuel Monitoring and Enforcement Unit at the Federal Trade Commission (FTC) to proactively monitor fuel markets for fraud, manipulation, and anti-competitive behavior that can artificially inflate prices. It would also increase transparency across fuel markets and significantly raise penalties for bad actors.

California drivers consistently pay among the highest gas prices in the nation, with costs often spiking faster and higher than the national average during periods of global disruption - putting added pressure on working families, small businesses, and commuters across the state.

"At a time when Trump's unauthorized war with Iran is driving up costs, we need stronger oversight to ensure oil companies and traders aren't exploiting the moment to pad their profits," said Senator Padilla. "This bill will bring greater transparency to fuel markets, hold bad actors accountable, and help protect consumers across California."

The Transportation Fuel Market Transparency Act would:

• Strengthen Oversight: Enhance the FTC's authority to crack down on false reporting or deceptive practices that artificially inflate fuel prices across gasoline, diesel, and biofuels markets.
• Establish Dedicated Monitoring: Create a permanent FTC unit responsible for continuously tracking crude oil and fuel markets to identify irregularities and protect consumers.
• Target Market Manipulation: Empower regulators to investigate and penalize companies engaging in price manipulation, abuse of market power, or other anti-competitive practices.
• Increase Penalties: Double the maximum penalty for market manipulation to $2 million per day, per violation.
• Improve Transparency: Expand federal data collection and public reporting on fuel supply and pricing to promote fair competition and prevent price gouging.

The legislation builds on previous efforts to strengthen federal oversight of energy markets, similar to authorities granted to the Federal Energy Regulatory Commission (FERC) and the Commodity Futures Trading Commission (CFTC), which have successfully policed manipulation in electricity and financial markets.

Despite having similar authority since 2007, the FTC has not consistently used its tools to monitor and enforce against manipulation in petroleum markets. This bill would ensure those authorities are fully utilized to protect consumers - including millions of Californians who rely on their cars every day.

A one-page summary of the Transportation Fuel Market Transparency Act is available here.

The full bill text is available here.

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