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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In an escalation that puts major oil companies under political scrutiny, President Trump accused Exxon Mobil, Chevron, Shell, and BP of failing to lower retail gasoline prices in line with the sharp decline in crude oil prices, according to media reports. He ordered the Department of Justice to open a price-gouging investigation. The directive comes amid persistent inflation concerns and consumer expectations for relief at the pump.
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Sign InThe American Petroleum Institute pushed back, stating that retail fuel prices do not move in lockstep with crude oil due to refining, distribution, and tax costs. Per market data, Exxon closed at $137.53 (June 25), Chevron at $171.45 (June 24), Shell at $78.81 (June 18), and BP at $37.86 (June 24). The political attack follows a notable drop in crude oil prices, raising questions about how quickly savings reach consumers.
Investors are watching the probe's potential impact on oil majors' margins, especially given Trump's stated goal of bringing the average gasoline price to $2.25/gallon from the current ~$3.93. At recent closes, Exxon trades near its weekly high of $137.62, while Chevron moves within a $170.86-$173.99 range. Future congressional hearings or regulatory disclosures could serve as additional negative catalysts for the sector.