Gasoline Prices Stay High After Crude Oil Falls Post U.S.-Iran MOU

U.S. and Iran signed a memorandum of understanding to reopen the Strait of Hormuz, a route for one-fifth of global oil. The deal helped pull West Texas Intermediate crude back to $69 per barrel, near its pre-war $67 level, after oil prices had surged during the conflict.

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AAA reported a national gasoline average of $3.90 per gallon on Friday, about $1 above the late-February level, after earlier peaks above $4.50 per gallon.

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Analysts cite low corporate gasoline inventories, strong seasonal demand, and a “margin squeeze” for retailers. The market is fragmented: 55% of stations are single-location operators, and major oil firms own under 5% of U.S. stations.

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President Donald Trump posted that oil companies are “gouging” consumers and asked the DOJ to investigate. American Petroleum Institute said gasoline prices do not move in lockstep with crude. Chevron CFO Eimear Bonner said a lag between crude costs and pump prices and prices should fall as market normalizes.

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Industry observers say public anger is misdirected. Andy Lipow notes oil firms own under 5% of stations and owners “are making lots of money.” Rob Smith stresses the fragmented market makes coordinated gouging unlikely. Chief economist Claudio Galimberti points to dwindling inventories and high seasonal demand as drivers of the price gap.

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WTI crude trades at $69 per barrel (pre-war $67). AAA reports a national gasoline average of $3.90 per gallon, up about $1 since late February. Major oil firms own under 5% of U.S. stations; 55% are single-location operators.

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Mark Wolfe of the National Energy Assistance Directors Association warns that an extra $100 in energy costs pushes low- and middle-income families into credit-card debt and cuts discretionary spending, hurting local businesses.

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Trump’s gouging claim conflicts with analysts who cite inventory shortages and market fragmentation as reasons for the lag. No evidence of coordinated price fixing has emerged, leaving the DOJ investigation’s scope uncertain.

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• “The public is mad at the major oil companies because gasoline prices have not fallen as fast as the price of crude oil. … Their anger is misplaced,” — Andy Lipow, President, Lipow Oil Associates

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• “The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil,” — Donald Trump, President of the United States

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• “Gasoline prices don’t move in lockstep with crude oil, especially during a major global disruption that is still affecting supply, refining and inventories,” — Bethany Williams, Spokesperson, American Petroleum Institute

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• “For low- and even many middle-income households living paycheck to paycheck, an additional $100 a month in energy costs is significant.” — Mark Wolfe, Executive Director, National Energy Assistance Directors Association

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The DOJ will examine possible price-fixing while the United States monitors the MOU’s effect on the Strait of Hormuz. Analysts expect gasoline prices to follow crude if inventories rebound.

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