TLDR
- Chevron’s CFO Eimear Bonner confirms gasoline prices will decline but emphasizes a time lag exists between crude oil drops and retail pump adjustments
- Trump accused major oil producers of consumer “gouging” and directed the Department of Justice to launch an investigation
- The president specifically called out Chevron, Exxon Mobil, Shell, and BP, claiming pump prices should reach $2.25 per gallon
- Thursday saw Brent crude decline 1.3% to $72.75 while WTI fell 1.1% to $69.60
- The U.S. national average for gasoline stands at $3.92 per gallon, representing a 13% decline from last month but higher than last year’s $3.22
Eimear Bonner, Chevron’s Chief Financial Officer, informed CNBC on Thursday that American consumers should anticipate declining gasoline costs. Nevertheless, she cautioned against expectations of instantaneous price reductions at service stations.
Bonner’s statement followed President Donald Trump’s allegations that prominent petroleum corporations were engaging in consumer “gouging” practices. The president contended that these companies were failing to transfer reduced crude oil expenses to motorists.
In a Truth Social post, Trump declared that “the big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil.” His statement explicitly identified Chevron, Exxon Mobil, Shell, and BP.
During her appearance on CNBC’s Squawk Box Europe, Bonner recognized consumer dissatisfaction. She expressed understanding for motorists “whether it’s in the U.S. or here in the U.K. or in Europe.”
“It’s going to take time,” Bonner explained. “There is a lag between oil prices and reductions in oil prices and when that shows up at the pump.”
She noted that Chevron was expanding production capacity by 7% to 10% during the current year. Bonner emphasized that major oil companies were “doing everything that we can” to address the situation.
Trump Directs DOJ to Investigate Petroleum Industry
Wednesday saw Trump announce he had instructed the Department of Justice to examine the matter without delay. A Justice Department representative verified the order, stating fuel costs represent “not only a national security issue” but impact “the wallet of every American.”
The president asserted that gasoline prices at the pump should be $2.25 per gallon. Current AAA data shows the national average at $3.92 per gallon.
This represents approximately a 13% decrease from $4.52 one month earlier. However, it remains significantly elevated compared to the $3.22 rate consumers paid during the corresponding period last year.
The previous week represented the first occasion since March that the national average dropped beneath the $4 per gallon threshold.
Crude Oil Prices Decline Following U.S.-Iran Agreement
Crude oil valuations have decreased since the United States and Iran executed an interim peace agreement last week. The two nations continue negotiating certain provisions of the 14-point accord.
Thursday trading saw Brent crude decline 1.3% to $72.75 per barrel. West Texas Intermediate decreased 1.1% to $69.60 per barrel.
The American Petroleum Institute challenged Trump’s characterization. Spokesperson Bethany Williams stated that fuel costs and crude prices don’t fluctuate in direct correlation, particularly when international supply networks remain stressed.
Representatives for Exxon Mobil, Shell, and BP had not issued responses to comment requests by Thursday.
Bonner’s remarks underscore the perspective that market dynamics, rather than intentional pricing strategies, are responsible for the disparity between crude and retail gasoline costs. The Justice Department’s investigation continues.
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