President Trump on Monday urged U.S. oil companies to take action to ease gasoline prices, saying that the energy giants “made too much money” from high oil prices due to the Iran war.
Mr. Trump’s remarks come as Brent crude, the international benchmark, fell more than 4% on Monday to about $84 a barrel amid hopes for diplomatic progress in ending the conflict. Yet oil prices remain considerably higher than their pre-war levels, and U.S. gasoline prices are above $4 a gallon, up from about $3 a gallon before the war.
In a recent CBS News poll, about half of Americans said elevated fuel costs are causing them financial difficulties. About eight in 10 of those polled said the Trump administration isn’t focusing enough on lowering consumer prices.
On Monday, Mr. Trump predicted that oil prices would “drop through the floor” when the Iran conflict is over. He also specifically criticized Chevron and ExxonMobil for profiting from higher oil prices, which have surged as the war largely halted the flow of crude transiting the Strait of Hormuz.
“But they made too much money, too much money. Chevron, too much money. Exxon Mobil, too much. Too much money,” Mr. Trump said Monday at the Oval Office during an executive order signing.
“I’m not happy about it”
The president pressed oil companies to do more to help consumers.
“When you look at one company, where they made 12 times what they made the year before, they’re going to give some of that back to the public, and they better cut the retail price, the consumer price,” Mr. Trump said Monday. “I’ll say it loud and clear: I’m not happy about it.”
ExxonMobil declined to comment. Chevron didn’t immediately respond to a request for comment.
Former President Joe Biden, Mr. Trump’s predecessor in the White House, also attacked oil companies for their profits as inflation spiked during his tenure.
Earlier on Monday, Mr. Trump directly criticized Chevron CEO Mike Wirth in a Sunday interview with Fox News host Maria Bartiromo. In a social media post, Mr. Trump also said Wirth had failed to praise the Trump administration for helping the energy industry.
“The only thing he conveniently forgot to mention is that, without the genius, foresight, strength, and stability, of the TRUMP Administration, the Oil Industry, and our Country itself, would be DEAD!,” Mr. Trump posted.
Trump also said Chevron is benefiting from operating in Venezuela. Executives from the company have said that increased crude imports from Venezuela are helping curb U.S. gas prices.
Oil companies don’t set fuel prices in the U.S. According to the Energy Information Administration, crude oil accounts for 51% of the cost of a gallon of gas, making it the biggest factor in determining prices at the pump.
Marketing and distribution, which include the cost of transporting fuel to gas stations across the U.S. and retailers’ operating costs, make up another 11% of the total cost of gas. Refining — the process of breaking down crude oil into different components — accounts for 20% of fuel prices.
