The president says energy companies should pass some of their recent windfall back to consumers
President Trump says major oil companies have earned too much money from the Iran conflict and should lower gasoline prices.
The national average stood at about $4.09 a gallon Tuesday, nearly 94 cents higher than a year ago.
Trump expects prices to fall sharply if the Iran conflict ends, but crude costs are only one part of what consumers pay at the pump.
President Trump is turning up the pressure on oil companies to reduce gasoline prices, arguing that they have made excessive profits while drivers struggle with fuel costs above $4 a gallon.
Speaking at the White House, Trump singled out ExxonMobil and Chevron after both companies reported sharply higher quarterly earnings. He said the companies had made too much money as the conflict with Iran disrupted global energy markets.
Theyre going to give some of that back to the public, and they better cut the retail price, the consumer price, Trump said. Im not happy about it.
In a separate social media post, Trump criticized Chevron CEO Mike Wirth and called on the industry to bring consumer fuel prices down now. Chevron recently reported quarterly earnings of $12.1 billion, nearly five times what it earned during the same period a year earlier, according to The Wall Street Journal.
Pump prices remain above $4
The nationwide average price of regular gasoline was $4.09 a gallon Tuesday, according to AAA. That was down slightly from $4.10 a week earlier but well above the $3.81 average recorded a month ago.
A year earlier, regular gasoline averaged about $3.15 a gallon.
Trump said he believes oil companies are keeping retail prices unnecessarily high even as crude-oil prices retreat from their recent peaks. He argues that producers and refiners benefited from the surge in oil prices caused by the war with Iran and should now pass some of those gains to consumers. Patrick DeHaan, head of Petroleum Analysis at GasBuddy, disagrees.
$4 gas isn't gouging, it's supply and demand, plain and simple, DeHaan posted on X. Same forces driving up electricity as power demand surges, same forces sending memory and chip prices soaring as AI eats up everything the fabs can make. Nobody calls that gouging. Watch your iPhone price.
The president has also linked high fuel prices to the disruption of shipments through the Strait of Hormuz, a narrow waterway connecting the Persian Gulf with global markets. A large share of the worlds oil and natural-gas exports normally passes through the strait.
The conflict sharply restricted that traffic and pushed crude prices above $100 a barrel at one point. Oil prices have since fallen amid signs that diplomatic efforts could reduce tensions, but they remain higher than before the war began.
Trump predicted that oil prices would drop through the floor if the conflict ends and normal shipping resumes.
Oil companies dont directly set pump prices
While oil-company profits are drawing the presidents criticism, the price displayed at a service station is shaped by several factors.
Crude oil represents about 51% of the retail price of gasoline, according to the U.S. Energy Information Administration. Refining accounts for roughly 20%, while distribution and marketing make up about 11%. Federal, state and local taxes account for the remainder.
Retail prices also tend to lag behind movements in the crude market. Gas stations may be selling fuel purchased when wholesale prices were higher, and local competition, transportation expenses and regional refinery capacity can affect how quickly prices fall.
Many branded gas stations are independently owned, meaning ExxonMobil, Chevron and other major producers do not directly determine the price charged at every station.
Trump maintains that the industry has room to provide relief after collecting billions of dollars in additional profits. His public criticism adds to earlier administration warnings about possible price gouging in the fuel market.
Photo By CNET
Posted: 2026-08-04 11:57:39

















