U.S. pump prices and projections

Vida May said:
Oh dear, you have me backed into a corner. I already posted my concerns, and it would not be wise for me to do it again because it is political, and that is forbidden. I was not sure if the discussion of religion and oil and oil and war are political so I googled for information. AI says...

So I can not explain my sarcastic comment. However, a geology professor who worked for oil companies in the Middle East gave me a copy of the books he wrote, and for years I have been expressing concern about our dependence on oil, and people who never look for information have assured me that the US has all the oil it needs. :cautious:
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It's okay, thanks. I think I understand it. And right, we don't want to break any rules. To my understanding, religion is not off limits, but it can result in arguments, and when those get out of control, threads can be closed.
 
Here's the problem with our oil...

The U.S. produces a massive amount of oil, but it's often the "wrong" kind for our infrastructure:
  • U.S. Production: Mostly light, sweet crude (low sulfur, low density) from shale regions like the Permian Basin.
  • U.S. Refineries: About 70% of capacity is optimized for heavy, sour crude (high sulfur, high density).
  • Historical Context: Most refineries were built in the 1970s and 80s when the world supply was shifting toward heavier oils from places like Venezuela and Mexico.
So even though we produce more than we use, we can't refine enough of it, so we need to import oil that's compatible with our refineries.
 
Today prices were up 40 cents from the last time I checked them. They are now $3.80 for a gallon of regular unleaded. ($379.9 if you want to play their silly tenth of a cent game, I don't) That's 5 cents higher than the previous high since the war started which was $3.75 and $1.30 higher than they were just before the war started.
 
Stocks of gasoline and distillates (including diesel) took a hit in the latest report. Draws on the SPR are nearing pipeline capacity.
Energy Inventory.jpg
While gasoline stocks were lower in November, they are slipping quite rapidly... as consumption doesn't seem to be easing. With the summer driving season nearly here... ouch! Distillates are of concern, as they would typically fall into late May and then begin a build into the fall. Right now nearing a low going back a few years.

All of which are reflected in pump prices rapidly rising.
energy prices.jpg
While at $4.22⁹ this morning, the markets are indicating another 46¢ is in the offing. We may see all time highs within the month, imo, with a new diesel high... very likely.
 
An average of 376 million gallons of gasoline are consumed every day in the US.

Frequently Asked Questions (FAQs) - U.S. Energy Information Administration (EIA)

The current average price is $4.30 which is $1.32 more that the $2.98 average on Feb 28.

US gas prices hit $4.30 average: Map shows prices per state

If you multiply 376 million gallons by $1.32 you get $496 million per day. That's how much extra we are paying just for gas for our vehicles.

Normally I wait till I'm down to a quarter of a tank before I buy gas. But this morning I decided to top it off even though the guage was still above 1/2. I managed to squeeze in $20 bucks worth. That was 5.26 gallons at $3.80 per gallon.
 
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To accompany higher gas prices, we're also going to have to pay more for cars and parts from Europe.

The U.S. is tearing up part of the tariff struck with EU leaders last summer. Tariffs on cars and lorries imported into the US from the EU will increase 15% to 25% from next week.
 
StarSong said:
Gas or gasoline powers cars.
Gas or "natural gas" powers gas stoves.
Propane is used for BBQs, RV stoves, and sometimes home heating, and is referred to as propane or gas.

We know which is being discussed by the context.
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But what about gas powered cars, or don't you have them?


2026-03-28 08.33.02.jpg


BTW Those prices are a bit old now they are far less at the moment. The photo is just to show the bottom reference
 
Wombat said:
But what about gas powered cars, or don't you have them?
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Down that rabbit hole I go. The confusion, likely being the term gasoline (a liquid state) and gas... another state of matter.

We have Liquified Petroleum Gas (LPG), which is technically a mixture of propane, butane and iso-butane. Nevermind the two states of matter in the description. Which I believe is what you call autogas, and I believe is in a liquid state at the pump, as well as the container in the vehicle. So why do you call that autogas?

Then there is propane alone, which we tend to used interchangeably with LPG, although many of the same uses. It is quite possible what we call Propane is actually LPG. We have Liquified Natural Gas (LNG). The there is Compressed Natural Gas (CNG) which sort of makes sense, imo.

The best I can tell is the states of matter... don't really matter in the world of petroleum descriptions. What do they call all of these variations in Chinese or Japanese?
 
Quite a jump in retail prices since Wednesday. It would appear the rapid rise is showing signs of slowing in the short term. SPRs of various countries are entering the market and severe restrictions are taking shape in Asia. The latter of which will hit our shores around end of June, in lack of products, pricing of imports, etc.
energy prices.jpg
I threw in the inflation adjusted data from both July, 2008 and June, 2022. It is an attempt to understand why U.S. demand has not shown any signs of decrease, from previous years.
 
Harry Le Hermit said:
Quite a jump in retail prices since Wednesday. It would appear the rapid rise is showing signs of slowing in the short term. SPRs of various countries are entering the market and severe restrictions are taking shape in Asia. The latter of which will hit our shores around end of June, in lack of products, pricing of imports, etc.
View attachment 501693
I threw in the inflation adjusted data from both July, 2008 and June, 2022. It is an attempt to understand why U.S. demand has not shown any signs of decrease, from previous years.
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To me, the highest gas prices I can remember seemed to be after the invasion of Iraq, and here we are 15 years later with moderate to high inflation, and gas is still cheaper than it was. I'm not trying to defend the latest politically created inflation and high gas prices. I have enjoyed the last years of cheap gas and moderate inflation, and wish it would last. But since I have no say in the matter, I have no choice but to accept things as they are.

But I have felt the economic effects of all this in the last two months. I would describe it as personally "spooky." I hope measures will be taken to reign in the negative impacts. I'm still OK, just not doing as well, but many others are being hurt in this environment of chaos.
 
According to the mileage recorder for USAA car insurance I've only driven 123 miles in the last 30 days. Still have over 1/2 tank left. The price doesn't affect me much.

Googled price in my area.

39 Minutes Ago
Regular
$4.67
Member Icon Owner

39 Minutes Ago
Midgrade
$4.87
Member Icon Owner

39 Minutes Ago
Premium
$5.27
Member Icon Owner
39 Minutes Ago

Diesel
$5.99
Member Icon Owner
39 Minutes Ago
 
StarSong said:
I paid $5.87/gallon for unleaded yesterday - and that was at Costco. I don't recall prices ever being this high.
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Same for me, but I live in a rural community of of Virginia, where gas prices are low. As of last week, I have not paid more than $4.00/gal. Fifteen years ago, it was over that at the same pump, maybe around $4.25, but it was a long time ago. But also as of last week, I was expecting to break that record high quite soon. This is not over yet. And inflation, I don't want to even think about that. I haven't seen anything like this since the 1970s.

We can say inflation is high, but it could be higher. But this bout has been relentless over a long period.
 
Part of the reason Spirit Airlines has shut down is because of high fuel prices. As a result, some 17,000 employees and contractors are now out of work and will soon be collecting unemployment benefits, which will cost taxpayers millions.

And what is the government doing? They're building an ugly, tasteless, giant arch for the National Mall and a tacky giant ballroom as part of a new White House east wing. Taxpayers will foot the bill for all this garbage, which will cost billions!
 
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