Chevron $CVX CFO Eimear Bonner said on Thursday that gasoline prices will come down as conflict in the Middle East continues to wind down, but that consumers should expect a delay before they see relief at the pump.
The executive's remarks came in response to Trump's accusation that major oil companies were failing to pass on lower crude costs to consumers
Credit: Angel Gutiérrez / Wikimedia Commons (CC BY-SA 4.0)
Chevron $CVX CFO Eimear Bonner said on Thursday that gasoline prices will come down as conflict in the Middle East continues to wind down, but that consumers should expect a delay before they see relief at the pump.
Her remarks came in response to President Donald Trump's accusation that major oil companies were failing to pass on lower crude costs to consumers. "The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil," Trump said Wednesday on Truth Social, adding that customers were being "gouged."
Speaking on CNBC's Squawk Box Europe, Bonner said consumers should not expect immediate relief. "It's going to take time though. There is a lag between, you know, oil prices and reductions in oil prices and when that shows up at the pump, but we expect that prices will come down as things continue to normalize," she said.
Bonner defended the industry's efforts, saying Chevron was growing production between 7% and 10% this year. "I think the majors are doing everything that we can," she said.
At the White House on Wednesday, Trump singled out Chevron, Exxon Mobil, Shell $SHEL, and BP $BP, arguing that pump prices needed to drop to $2.25 per gallon. He said he had ordered the Department of Justice to look into the matter. "The price of fuel is not only a national security issue, it impacts the wallet of every American. We will always commit to ensuring affordability in this nation," a DOJ spokesperson said.
The American Petroleum Institute, the industry's main lobbying group, pushed back on the president's framing, with spokesperson Bethany Williams arguing that fuel prices and crude costs do not track each other directly — particularly when a major global disruption continues to strain supply chains, refining capacity, and inventories.
An interim peace agreement between the U.S. and Iran has sent crude prices lower, even as the two governments remain at odds over certain provisions of the deal. On Thursday, international benchmark Brent crude was trading down 1.3% at $72.75 a barrel, while West Texas Intermediate had dropped 1.1% to $69.60.
AAA data put the nationwide average at $3.92 per gallon Wednesday — a decline of roughly 13% from the $4.52 recorded a month prior, though still well above the $3.22 that drivers were paying at the same point last year. Last week marked the first time since March that the average dipped under $4.
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