H.R. 8698 — Lower Prices at the Pump Act

This section prohibits any person from selling or offering for sale gasoline or other petroleum distillates at wholesale or retail at a price that is unconscionably excessive and indicates the taking of unfair advantage of circumstances related to military conflict with Iran. The prohibition applies during the period beginning on the date of enactment and ending on the date the President declares that military operations against Iran which began in March 2026 have ceased indefinitely and certifies that the Strait of Hormuz is fully open with global shipping resumed. In determining a violation, the section requires consideration of whether the price grossly exceeds the average price charged by the seller during the 30-day period prior to February 28, 2026, exceeds prices from competing sellers in the same location, reasonably reflects additional costs or risks incurred by the seller, or is substantially attributable to market conditions, as well as whether the quantity sold increased relative to that 30-day period.

This section provides for enforcement of violations of section 2(a) by the Federal Trade Commission, treating such violations as unfair or deceptive acts or practices under section 18(a)(1)(B) of the Federal Trade Commission Act and granting the Commission the same jurisdiction, powers, and duties as under that Act. It authorizes state attorneys general or designated officials to bring civil actions in federal district court as parens patriae on behalf of state residents to enjoin violations, enforce compliance, obtain damages or restitution, or secure other relief, subject to prior written notice to the Commission, the Commission’s right to intervene, and a bar on state actions while a federal enforcement proceeding is pending. The section also imposes criminal penalties of up to $500,000,000 for violations of section 2, enforceable only by the Department of Justice with priority given to companies whose annual U.S. wholesale or retail sales of gasoline and petroleum distillates exceed $10,000,000,000. Amounts collected are deposited into the Consumer Relief Trust Fund and used to provide assistance under the Low Income Home Energy Assistance Program and the Weatherization Assistance Program.

This section defines terms used in the Act. It specifies that “Commission” means the Federal Trade Commission; “retail,” with respect to gasoline or other petroleum distillates, includes any sale to an end user such as a motorist and any direct sale to agriculture, industry, residential, or commercial consumers; and “wholesale” means truckload or smaller sales for which title transfers at a product terminal or refinery, as well as dealer tank wagon sales priced on a delivered basis to retail outlets.

This section preserves the authority of the Federal Trade Commission to bring enforcement actions or take any other measures under the Federal Trade Commission Act or any other provision of law. This section also provides that the Act does not preempt any state law.