Chevron’s chief executive Mike Wirth has warned that petrol prices in the United States could continue to climb as the war with Iran drags on, exposing the limitations of measures taken to protect consumers. Speaking on CBS’s Face the Nation, Wirth said it was “very hard to say” that prices had peaked, contradicting earlier assurances from administration officials.
National average petrol prices currently stand at $4.46 per gallon. Wirth pointed to ongoing supply problems exacerbated by the closure of the Strait of Hormuz, which has proved impossible for the US to reopen. He described “upward pressures” on prices and warned that the market risks a severe drop in demand, further increasing economic volatility.
“The shock absorbers are being drained out of the system, which means there's this upward pressure on price, because supply is getting tighter and the ability to resupply is getting more difficult, and that increases the likelihood of volatility,” he said.
Jet fuel prices are also expected to rise over the summer, with Wirth noting that airlines are already adjusting flight schedules. He added: “I think aviation is clearly an area where it’s going to probably get worse over the next few weeks.” A survey found that 51 per cent of Americans still plan international travel this summer, but rising costs may force many to cancel.
A poll by Quinnipiac found that nearly two-thirds of Americans blame President Trump for the crisis. Meanwhile, a White House spokesperson insisted that once traffic in the Strait of Hormuz normalises, energy prices will plummet again, aiming to reach pre-Biden levels before the end of Trump’s term.
