Chevron Chief Financial Officer Eimear Bonner says consumers should not expect an immediate drop in gasoline prices, even as crude oil costs continue to fall.
Bonner made her comments on CNBC’s Squawk Box Europe, pushing back against expectations of a rapid pass-through from lower crude prices to pump prices.
“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,” Bonner said.
Her remarks came directly in response to President Donald Trump’s public accusation that oil majors were deliberately withholding savings from American consumers at the pump.
Trump wrote on Truth Social that “the big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil,” and accused the companies of “gouging” customers.
Speaking at the White House on Wednesday, Trump specifically called out Chevron, Exxon Mobil, Shell, and BP, saying gasoline prices “should be much lower at the pump.”
Trump stated that gas prices should be at $2.25 per gallon and added that he had ordered the Department of Justice to “immediately” start looking into the matter.
The DOJ confirmed its involvement, with a spokesperson stating: “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.”
Bonner defended Chevron’s (CVX) efforts, saying the company was actively working to grow supply rather than restrict it to prop up prices at the pump.
“Well, I think the majors are doing everything that we can. I’ll talk for Chevron, and we’re growing this year. We’re going to grow production at 7% to 10%,” Bonner told CNBC.
Industry group the American Petroleum Institute backed Chevron’s position, with spokesperson Bethany Williams stating that “gasoline prices don’t move in lockstep with crude oil, especially during a major global disruption that is still affecting supply, refining and inventories.”
Experts point to several structural factors that slow the transmission of crude price declines to consumers, including supply chain lags, elevated refinery margins, and local inventory levels.
AAA data cited by NBC News placed the national average at $3.92 a gallon early Wednesday, roughly 13% lower than the $4.52 recorded the previous month.
However, drivers are still paying around 70 cents more per gallon compared to the same period last year, when the AAA national average stood at $3.22 a gallon.
An interim peace agreement between Washington and Tehran reached last week has helped push crude prices lower, even as the two governments continue to negotiate certain provisions of the deal.
Spokespeople for Exxon Mobil, Shell, and BP had not yet responded to requests for comment at the time of publication.
