TLDR
- Chevron’s CFO Eimear Bonner confirms gasoline prices will decline but emphasizes a time lag exists between crude oil price reductions and retail pump prices
- President Trump launched a DOJ investigation into Big Oil, accusing companies of consumer “gouging”
- Trump specifically called out Chevron, Exxon Mobil, Shell, and BP, claiming gas should cost $2.25 per gallon
- Brent crude declined 1.3% to $72.75 while WTI decreased 1.1% to $69.60 on Thursday
- Current national average gasoline price stands at $3.92 per gallon, representing a 13% decline from last month but up from $3.22 last year
Eimear Bonner, Chief Financial Officer at Chevron, informed CNBC on Thursday that gasoline prices across the United States will decline. Despite this positive outlook, she cautioned consumers against expecting instant savings when they fill up their tanks.
Bonner’s statements followed President Donald Trump’s public criticism of leading oil corporations for allegedly “gouging” American consumers. The President contended that these energy giants 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.” He specifically identified Chevron, Exxon Mobil, Shell, and BP in his statement.
During her appearance on CNBC’s Squawk Box Europe, Bonner recognized consumer frustration over current fuel costs. She expressed understanding for drivers “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.”
Bonner revealed that Chevron plans to increase production by 7% to 10% during the current year. She stated that major oil companies were “doing everything that we can” to address the pricing situation.
Trump Directs DOJ to Investigate Major Oil Companies
President Trump announced Wednesday that he had instructed the Department of Justice to immediately investigate the matter. A DOJ representative confirmed receiving the directive, noting that fuel pricing represents “not only a national security issue” but impacts “the wallet of every American.”
Trump stated that retail gasoline prices should reach $2.25 per gallon. Current data from AAA shows the nationwide average at $3.92 per gallon.
This represents approximately a 13% drop from $4.52 one month prior. However, it remains significantly higher than the $3.22 price point drivers experienced during the same period last year.
The previous week represented the first occasion since March that the national average fell below the $4 per gallon threshold.
Crude Oil Prices Decline Following U.S.-Iran Agreement
Crude oil markets have experienced downward pressure since the United States and Iran executed an interim peace agreement last week. Both nations continue negotiating specific provisions within the 14-point framework.
Thursday trading saw Brent crude decrease 1.3% to $72.75 per barrel. West Texas Intermediate fell 1.1% to $69.60 per barrel.
The American Petroleum Institute challenged Trump’s characterization of the situation. Spokesperson Bethany Williams clarified that fuel prices and crude costs do not move in lockstep, particularly when global supply chains face ongoing disruptions.
Representatives from Exxon Mobil, Shell, and BP had not issued responses to media inquiries as of Thursday.
Bonner’s remarks underscore the industry position that market dynamics, rather than intentional price manipulation, explain the disconnect between crude oil and retail gasoline prices. The Department of Justice investigation continues.
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