FTC Report Finds Low Risk of Nationwide Price‑Setting in U.S. Ethanol Industry

USA: FTC Report Finds Low Risk of Nationwide Price‑Setting in U.S. Ethanol Industry

An annual assessment released today indicates that the U.S. ethanol production sector shows limited concentration, reducing the likelihood of nationwide price‑fixing or coordinated output decisions, according to the Federal Trade Commission’s 2025 Report on Ethanol Market Concentration.

Regulatory Background

The Clean Air Act, as amended by the Energy Policy Act of 2005, mandates the FTC to conduct a yearly review of market concentration in the ethanol industry. This statutory requirement aims to ensure that sufficient competition exists to prevent anticompetitive behavior such as price‑setting.

Key Findings

The commission’s analysis concluded that both the level of market concentration and the number of active producers suggest that exercising market power on a nationwide basis is unlikely. The report notes that the industry’s competitive dynamics have remained consistent with prior years.

Implications for Competition

By confirming a competitive landscape, the FTC’s findings support the agency’s broader mission to protect consumers from antitrust risks. The absence of significant price‑setting risk implies that consumers are likely to benefit from market‑driven pricing rather than coordinated price increases.

Next Steps

The report was approved by a unanimous 2‑0 vote of the commission’s leadership, with Christopher Grengs serving as the lead staff attorney on the matter. The FTC indicated that it will continue monitoring the sector annually and will intervene if future data reveal heightened concentration or anticompetitive conduct.

This report is based on information from Federal Trade Commission, licensed under Public Domain (U.S. Government Work). Source: Official U.S. Government release.