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The law, which was enacted under Nixon, was meant to encourage domestic production - from old fields - and led to a bubble in refinery capacity to the tune of several million barrels a day, with lots of small refineries opening for small scale oil recovery, etc. The results were complicated, but the government didn't require people to sell for less than the wholesale price. The price restrictions fell mainly on the suppliers and producers of gasoline. The idea was to keep the country's economy from collapsing with gas and heating oil prices skyrocketing and killing demand. It may have been necessary. I remember it seemed so at the time.
The US has had a bunch of laws to support domestic oil. One from the Eisenhower era limited imports. That didn't stop the decline in production. Gasoline at that time was selling for next to nothing per gallon. Domestic fields cost more to extract and then process.