Gas is now under $3

163,258 Views | 1888 Replies | Last: 1 day ago by Grapesoda2525
BigRobSA
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3rd Coast said:

We still thinking this isn't a problem, and won't rocket inflation?

Inflation is a monetary entity. This is idiotic, but not inflationary. It will raise prices of everything, everywhere. But, that's not inflation, as it is defined.
ErnestEndeavor
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I remember filling up with gas over $4 a gallon in 2008. Equivalent would be over $6 today. Hopefully, we don't get there in real terms.

Our current gas prices (at least where I live) are in line with what would be expected if you average gas prices out going back fifty years or so when accounting for inflation. Other than just after Russia/Ukraine, the last ten years has been cheaper than the historical averages.

I don't like it any more than anyone else, but there's some perspective here.
Gordo14
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nortex97 said:

Maybe we should have a separate thread for 'Democrat state gas price insanity.' 'Cap and invest' is working out great for their serfs.


Cap and invest is a smaller tax on gasoline than the Federally run tax, RFS (renewable fuel standard), that is at all time highs thanks to this administration's policies. Back in 2024 this was a 8-10 cent per gallon tax. Then this administration made a bunch of awful policy decisions and everybody (except farmers of course) is paying 36-37 cents per gallon on all the fuel you purchase. This was strictly a policy decision by this administration. Seems like California's cap and invest has lost to this administration's policies for dumbest gasoline tax. The ****ing RIN is worth more than the ethanol despite the fact that ethanol blending doesn't even need a subsidy to exist at this point.
Gordo14
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ErnestEndeavor said:

I remember filling up with gas over $4 a gallon in 2008. Equivalent would be over $6 today. Hopefully, we don't get there in real terms.

Our current gas prices (at least where I live) are in line with what would be expected if you average gas prices out going back fifty years or so when accounting for inflation. Other than just after Russia/Ukraine, the last ten years has been cheaper than the historical averages.

I don't like it any more than anyone else, but there's some perspective here.


It's been cheaper strictly because of the shale revolution - it's had nothing to do with who is/was president. I mean the real price crash after shale occurred when Obama was president.

Losing a war to Iran causing 2008 gas prices again IS government policy.
shiftyandquick
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Trump is already trying to build public expectation that gas/oil/diesel prices will not be down til after the midterm election, but of course will decrease right after. All part of the plan.

https://apnews.com/article/trump-oil-prices-iran-midterms-22ffe753bb2d60c99024ca6cfbec4142
FlyRod
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T&P for truckers and farmers who rely on diesel.
ErnestEndeavor
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Of course it's policy-driven. Just pointing out we've been through worse.

I am curious though how bad it could have gotten in 2008 into 2009 had we not had the demand destruction from the GFC. Off the top of my head, I can't remember the reason it had spiked that high. OPEC was playing games for sure but I don't think that was the only factor.
MemphisAg1
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It would probably anger a lot of people if they knew the US is actively exporting gasoline right now. It's a global commodity, and right now the demand for it is higher elsewhere due to crude supply interruptions and refinery outages. Iran and Russia/Ukraine are definitely contributing to that. The net result is a global shortage of gasoline and higher exports from the US, meaning our gas prices are higher here because of it.

I'm a free trade advocate and don't get worked up by this... free markets are much more efficient at resolving supply/demand imbalances than governments. But politically, this could really hurt R's if it gets traction in the media.
Dan Scott
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We were in a commodity super cycle where India, china, and emerging markets were all growing at the same time bigly. At the same time Iraq war limited some crude, US shale boom hadnt happened yet, Venezuela was having unrest, and Nigeria was being Nigeria. And there weren't fuel efficient vehicles or energy saving appliances like there are now.
nortex97
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Gordo14 said:

nortex97 said:

Maybe we should have a separate thread for 'Democrat state gas price insanity.' 'Cap and invest' is working out great for their serfs.


Cap and invest is a smaller tax on gasoline than the Federally run tax, RFS (renewable fuel standard), that is at all time highs thanks to this administration's policies. Back in 2024 this was a 8-10 cent per gallon tax. Then this administration made a bunch of awful policy decisions and everybody (except farmers of course) is paying 36-37 cents per gallon on all the fuel you purchase. This was strictly a policy decision by this administration. Seems like California's cap and invest has lost to this administration's policies for dumbest gasoline tax. The ****ing RIN is worth more than the ethanol despite the fact that ethanol blending doesn't even need a subsidy to exist at this point.

Cap and Invest is not the only California tax, and that it is unpredictable has been a useful tool to shut down refineries in the state. I won't address your other 'points' as I don't really care about such ramblings.
ErnestEndeavor
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Yeah, if push comes to shove we could ban fuel exports and restrict our refineries to US-use only. Would not put it past Trump to do this but I don't think he will, at least not until the issue got much worse.

ErnestEndeavor
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And the reality is (if reports are correct) it appears more oil is leaving the gulf than was in June, but the markets have been trading on vibes during this war more than anything else.
BrazosDog02
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jja79 said:

I don't buy diesel but saw it's $5.95 where I am. Regular was $4.59. People notice.


Diesel is high. My trucks and tractors all use it.

I'm already starting to eyeball my red diesel tank and have impure thoughts.
Eliminatus
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I got in an accident a couple of weeks ago and my truck has been in the shop ever since. Have had a little commuter car thingie as a rental since then. It's tiny and puny but fun to laugh at and honestly the fuel mileage has been such a breath of fresh air. Went from 13mpg to around 45mpg.

Can't wait to get my truck back but damn....taking it in the wallet again, not looking forward to that. Going to be eye opening again filling up. Like I was in a hazy surreal dream or something.

Thanks Trump for keeping us under $3!
hindsight
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Eliminatus said:

I got in an accident a couple of weeks ago and my truck has been in the shop ever since. Have had a little commuter car thingie as a rental since then. It's tiny and puny but fun to laugh at and honestly the fuel mileage has been such a breath of fresh air. Went from 13mpg to around 45mpg.

Can't wait to get my truck back but damn....taking it in the wallet again, not looking forward to that. Going to be eye opening again filling up. Like I was in a hazy surreal dream or something.

Thanks Trump for keeping us under $3!


Why drive a truck?
Eliminatus
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hindsight said:

Eliminatus said:

I got in an accident a couple of weeks ago and my truck has been in the shop ever since. Have had a little commuter car thingie as a rental since then. It's tiny and puny but fun to laugh at and honestly the fuel mileage has been such a breath of fresh air. Went from 13mpg to around 45mpg.

Can't wait to get my truck back but damn....taking it in the wallet again, not looking forward to that. Going to be eye opening again filling up. Like I was in a hazy surreal dream or something.

Thanks Trump for keeping us under $3!


Why drive a truck?

Because it is my only personal vehicle?
Dan Scott
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Price is too high. Time to have another meeting

nortex97
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ErnestEndeavor said:

And the reality is (if reports are correct) it appears more oil is leaving the gulf than was in June, but the markets have been trading on vibes during this war more than anything else.

Correct, but not correct for Saudi and Russian flows. Former are shuttered at the moment, and the latter are getting worse by the day, plus they've banned diesel exports (seemingly the primary price discussion here) for weeks now.

There is talk of convincing Ukraine and Russia alike to cease attacks on oil/gas infrastructure. This would have a great impact on supply fairly quickly, especially to Europe. But there is no talk of re-opening blue state refineries Democrats have happily run out of business.

Quote:

California shut down 17% of its refining capacity in 10 months. Then the global diesel market got squeezed. The $9.99 pumps are what happens when a fuel island loses its refineries.

Phillips 66 closed its Los Angeles refinery in December. 139,000 barrels a day, gone. Valero's Benicia refinery stopped producing fuel in April. Another 145,000.

Here's the part most people don't know. No pipeline connects California to the Gulf Coast refining hubs that supply the rest of the country. The state runs on its own refineries plus whatever arrives by ship. When Texas runs short, fuel flows in through pipes within days. When California runs short, relief is a tanker that's weeks away.

That setup worked as long as in-state capacity covered demand. Since 2020 the state has lost roughly 20% of it. Marathon converted Martinez to renewables. Phillips 66 converted Rodeo. Then the two full closures this year.

So when US refineries hit 98% utilization and drone strikes started knocking Russian refineries offline, every state felt it. Diesel set a national record at $5.98. But California diesel sits at $7.91, up 70% since January, because the state absorbed a global shock with two fewer refineries and no pipe to borrow from anyone.

The pumps showing $9.99 have four digits. The people who installed them never imagined needing five.

Quote:

According to the California Energy Commission, California listed around 30-40 closed refinery facilities as of early 2026. Operable refineries fell from 23 in 2000 and over 40 in the 1980s to roughly 11-12 by mid-2026. Major recent losses include Phillips 66 Los Angeles (late 2025) and Valero Benicia (April 2026), cutting substantial capacity.

74OA
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"The national average for a gallon of diesel rose to a record $6.05 on Thursday, up more than 60% from $3.71 a year ago, according to data from AAA. Diesel is widely used in trucking and rail, affecting the cost of transporting goods around the U.S., as well as in construction and farming."

https://www.cbsnews.com/news/rising-diesel-prices-consumer-impact/
Hoyt Ag
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BrazosDog02 said:

jja79 said:

I don't buy diesel but saw it's $5.95 where I am. Regular was $4.59. People notice.


Diesel is high. My trucks and tractors all use it.

I'm already starting to eyeball my red diesel tank and have impure thoughts.


But but but it's just a few cents bro. All going swimmingly according to the plan.

Filled up last night 55 gallons of diesel. 325.45.
BrazosDog02
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I know. Remember when we had to swipe twice at 75.00 and now we swipe twice at 150.00….


My diesels are sitting in the garage. I find myself saying "so….what exactly is the towing capacity of this F150?"

No Spin Ag
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Hoyt Ag said:

BrazosDog02 said:

jja79 said:

I don't buy diesel but saw it's $5.95 where I am. Regular was $4.59. People notice.


Diesel is high. My trucks and tractors all use it.

I'm already starting to eyeball my red diesel tank and have impure thoughts.


But but but it's just a few cents bro. All going swimmingly according to the plan.

Filled up last night 55 gallons of diesel. 325.45.


This reminds me of a guy I saw the other night who said he's losing money every time he uses his truck because it's costing twice as much now.

Family business to boot.
There are in fact two things, science and opinion; the former begets knowledge, the later ignorance. Hippocrates
The Collective
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PADD 3 (gulf coast) for diesel is insane. Up 12% month over month - prepare to get forked on all your consumer **** soon.
docb
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That sucks. Going to have to fill up my truck today and get fuel for all my ranch equipment tomorrow. It will probably be about 55 gallons of diesel for me as well.
74OA
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No Spin Ag said:

Hoyt Ag said:

BrazosDog02 said:

jja79 said:

I don't buy diesel but saw it's $5.95 where I am. Regular was $4.59. People notice.


Diesel is high. My trucks and tractors all use it.

I'm already starting to eyeball my red diesel tank and have impure thoughts.


But but but it's just a few cents bro. All going swimmingly according to the plan.

Filled up last night 55 gallons of diesel. 325.45.


This reminds me of a guy I saw the other night who said he's losing money every time he uses his truck because it's costing twice as much now.

Family business to boot.

At some point, if not already, folks like him will be passing on that cost to us, his customers.
Canvasback
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74OA said:

No Spin Ag said:

Hoyt Ag said:

BrazosDog02 said:

jja79 said:

I don't buy diesel but saw it's $5.95 where I am. Regular was $4.59. People notice.


Diesel is high. My trucks and tractors all use it.

I'm already starting to eyeball my red diesel tank and have impure thoughts.


But but but it's just a few cents bro. All going swimmingly according to the plan.

Filled up last night 55 gallons of diesel. 325.45.


This reminds me of a guy I saw the other night who said he's losing money every time he uses his truck because it's costing twice as much now.

Family business to boot.

At some point, if not already, folks like him will be passing on that cost to us, his customers.
That is the way price increases work.
CanvasbackAg
lb sand
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Y'all don't even want to know what's going on with steel prices. Spot market price has almost doubled since January.
No Spin Ag
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lb sand said:

Y'all don't even want to know what's going on with steel prices. Spot market price has almost doubled since January.


In English for real world applications we'll be buying, please.
There are in fact two things, science and opinion; the former begets knowledge, the later ignorance. Hippocrates
Ag CPA
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LegalDrugPusher said:

Trump is right. Gas prices will fall like a rock. Democheats worst nightmare is creeping upon them. Lower gas prices all summer and into the fall that will help the Republicans rebound.

Still laughing at how bad this prediction was.
Charpie
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And its only going to get worse

Ducks4brkfast
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lb sand said:

Y'all don't even want to know what's going on with steel prices. Spot market price has almost doubled since January.

I've been mentioning this since Trump took office.

I bought a beam yesterday and paid $2.75/lb.
Queso1
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No Spin Ag said:

lb sand said:

Y'all don't even want to know what's going on with steel prices. Spot market price has almost doubled since January.


In English for real world applications we'll be buying, please.


You're paying double for steel products in this noble war effort.
No Spin Ag
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Queso1 said:

No Spin Ag said:

lb sand said:

Y'all don't even want to know what's going on with steel prices. Spot market price has almost doubled since January.


In English for real world applications we'll be buying, please.


You're paying double for steel products in this noble war effort.


Good thing very few products are made with steel. [Obvious sarcasm should be obvious]
There are in fact two things, science and opinion; the former begets knowledge, the later ignorance. Hippocrates
BrazosDog02
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No Spin Ag said:

Hoyt Ag said:

BrazosDog02 said:

jja79 said:

I don't buy diesel but saw it's $5.95 where I am. Regular was $4.59. People notice.


Diesel is high. My trucks and tractors all use it.

I'm already starting to eyeball my red diesel tank and have impure thoughts.


But but but it's just a few cents bro. All going swimmingly according to the plan.

Filled up last night 55 gallons of diesel. 325.45.


This reminds me of a guy I saw the other night who said he's losing money every time he uses his truck because it's costing twice as much now.

Family business to boot.


How is he losing money? It sounds like whoever is running the business needs to be fired. lol. He should be maintaining profit margins and giving quotes that are good for no more than 14 days with price increase baked in to cover that period.

But he might be cutting prices to win jobs. They take a beating on profits or "match" other quotes so that they win the work. It's a terrible mindset as a business owner and a fast track way to go out of business.
AGHouston11
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BrazosDog02 said:

No Spin Ag said:

Hoyt Ag said:

BrazosDog02 said:

jja79 said:

I don't buy diesel but saw it's $5.95 where I am. Regular was $4.59. People notice.


Diesel is high. My trucks and tractors all use it.

I'm already starting to eyeball my red diesel tank and have impure thoughts.


But but but it's just a few cents bro. All going swimmingly according to the plan.

Filled up last night 55 gallons of diesel. 325.45.


This reminds me of a guy I saw the other night who said he's losing money every time he uses his truck because it's costing twice as much now.

Family business to boot.


How is he losing money? It sounds like whoever is running the business needs to be fired. lol. He should be maintaining profit margins and giving quotes that are good for no more than 14 days with price increase baked in to cover that period.

But he might be cutting prices to win jobs. They take a beating on profits or "match" other quotes so that they win the work. It's a terrible mindset as a business owner and a fast track way to go out of business.


You can set your price to maintain profit margin but there is a point where people stop buying it. You go out of business that way as well.

 
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