Lower Prices at the Pump Act
- Bill Number
- H.R. 8698
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2026-05-07: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-05-13T21:04:24Z
AI-Generated Summary
Purpose
The Lower Prices at the Pump Act (H.R. 8698) aims to protect consumers from excessive pricing (price gouging) of gasoline and other petroleum-based fuels during a specific period tied to U.S. military operations against Iran that began in March 2026.
Key Provisions
- Prohibition on Price Gouging (Sec. 2): Bans selling or offering gasoline or petroleum distillates at wholesale or retail prices that are "unconscionably excessive" and exploit the military conflict with Iran. Applies from enactment until the President certifies to Congress that operations have ceased and the Strait of Hormuz (a key shipping route) is fully open, after consulting congressional leaders.
- Factors for Violations: Courts/ regulators consider:
- If prices grossly exceed the seller's 30-day average before February 28, 2026, or competitors' prices in the same area.
- Whether prices reasonably reflect uncontrollable costs, risks, or market conditions.
- If supply volumes increased compared to pre-February 28, 2026 levels.
- Enforcement (Sec. 3):
- FTC Role: Treats violations as unfair/deceptive practices under the Federal Trade Commission Act, with full FTC investigation and penalty powers.
- State Actions: State attorneys general can sue on behalf of residents for injunctions, damages, or relief (parens patriae means acting as "parent of the country" to protect citizens), after notifying FTC; FTC can intervene.
- Criminal Penalties: Up to $500 million fine per violation, enforced by DOJ with priority on companies with over $10 billion in annual U.S. fuel sales.
- Funds: Penalties go to a Consumer Relief Trust Fund for low-income energy assistance (LIHEAP) and home weatherization programs run by HHS and DOE.
- Definitions (Sec. 4): Clarifies "retail" (sales to end-users like drivers or businesses) and "wholesale" (bulk sales at terminals/refineries or to retailers).
- Other Laws (Sec. 5): Does not limit FTC's existing powers or override state laws.
Significant Changes to Existing Law
- Introduces a temporary, targeted ban on fuel price gouging linked to a specific geopolitical event (Iran conflict), unlike general antitrust laws.
- Adds criminal penalties (up to $500M fines) for what was previously mostly civil enforcement.
- Enables state-led lawsuits with federal coordination and dedicates penalties to consumer energy aid programs, expanding beyond standard FTC remedies.
Potential Impacts
- Citizens: Could lower fuel costs for drivers, farmers, industries, and households during the crisis; penalty funds aid low-income energy bills and home efficiency upgrades.
- Government Agencies: Increases workload for FTC (enforcement), DOJ (criminal cases), state AGs (lawsuits), HHS, and DOE (fund distribution).
- Fuel Industry: Deters sharp price hikes but may complicate pricing amid supply disruptions.
- International Relations: Ties domestic prices to U.S.-Iran military status and Strait of Hormuz shipping, potentially influencing foreign policy signaling.
Main Stakeholders Affected
- Consumers: Motorists, agriculture, industry, residential, and commercial fuel users.
- Fuel Sellers: Wholesalers, retailers, refiners, and large companies (over $10B sales prioritized for penalties).
- Government Entities: FTC, DOJ, state attorneys general, HHS, DOE.
- Low-Income Households: Benefit indirectly via energy assistance programs.
Notable Legal, Constitutional, or Political Implications
- Legal: Relies on FTC Act for civil enforcement but adds novel criminal fines and state parens patriae actions; vague terms like "unconscionably excessive" may lead to litigation over fair pricing standards.
- Constitutional: Potential due process challenges if price controls seen as arbitrary; state actions raise federalism questions but include FTC oversight to avoid conflicts.
- Political: Responds to a hypothetical 2026 crisis, empowering executive (President's certification) and Congress (consultation); bipartisan committee referral signals cross-aisle energy policy focus.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. McDonald Rivet, Kristen [D-MI-8]
Cosponsors (1)
Recent Actions
- 2026-05-07: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-05-07: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-05-07: Introduced in House
- 2026-05-07: Introduced in House
Bill Versions
- Lower Prices at the Pump Act — issued 2026-05-07 — PDF (9 pages)