President Donald Trump recently accused major companies of "gauging" U.S. consumers by not lowering gas prices quickly enough even though the cost of oil has plummeted since the ceasefire between the U.S. and Iran.
A top official from a U.S. company rejected the notion, but such a scenario has just taken place in South Korea. CNBC noted that prosecutors indicted four major oil refiners for violating fair trade laws, claiming they colluded among themselves to increase domestic fuel prices.
The companies in question are HD Hyundai Oilbank, SK Energy, GS Caltex, and S-Oil. The former two have been accused of colluding on sales worth more than $9 billion. The other two mimicked the prices, so the total impact is almost twice as high, local news agency Yonhap said.
Prosecutors said that the price increases took place after the war between the U.S. and Iran began, However, they noted that this was not an isolated situation but a systemic practice that had a new episode during the war.
Donald Trump has also accused U.S. retailers of engaging in similar behavior. Last week, he warned retailers to lower prices at the pump, saying there will be "big problems" if they don't.
"Gasoline Retailers must get their Prices down, IMMEDIATELY! They're too high considering that Oil is now at $68 a Barrel, and heading south," Trump said in a social media publication last Monday night.
"The Retailers must quickly react to this statement, and do what they know is right — DROP YOUR PRICE FOR OUR GREAT AMERICAN PEOPLE! There will be no gauging, which is totally illegal. If Retailers don't do this, big problems lie ahead! Start targeting around the $2.50 a Gallon number, and California should stop charging such heavy Taxes on their Gasoline. Soon the Tax will be higher than the Product itself, and the United States will not stand for it, nor will the People of California, who are being abused by these ridiculous Taxes, and by their own Government," Trump added.
Trump had already urged companies to lower prices, particularly since the U.S. and Iran agreed to cease hostilities and work to reopen the Strait of Hormuz.
However, Chevron CFO Eimear Bonner said the week prior that "it's going to take time" for that to happen.
Speaking on CNBC's "Squawk Box Europe," Bonner said companies are doing "everything we can" to address the situation.
"What I would say is, we're all concerned about prices. So, there is a lot of empathy, whether it's in the U.S. or here in the U.K. or in Europe for consumers," Bonner added.
"It's going to take time though. There is a lag between, you know, oil prices and reductions in oil prices and when that shows up at the pump, but we expect that prices will come down as things continue to normalize."
