24 years ago, I recall diesel being $1.25/gallon, and hamburger meat at a little local grocer for $1/pound any time they had a sale.
Now, even going to Costco, their ground chuck is $6/pound.
Inflation is high ... but not that high
Treasury has already tried to reassure markets and failed
Add to this other trade war nonsense...
This was the desired effect though, as higher oil prices means more profit for US based oil producers. I'm sure that will trickle down any time now.
Honestly, I think you're giving far too much credit to the current US government.
That's giving the Trump administration too much credit. Before the war there were pieces about how oil companies were doing worse under Trump than under Biden[1]. Of course, you could argue that the Iran war is Trump finally responding to oil companies, but given that it only started more than a year after he took power, it really makes you wonder whether Trump is bumbling along, or playing some 5d chess with the global oil market. On the flip side there's plenty of evidence that he doesn't want high oil prices, for instance lifting sanctions on Iranian and Russian oil.
[1] https://www.economist.com/business/2025/02/06/donald-trump-l...
There is nothing stopping US refineries from producing more diesel, you can use both sweet and sour, this is speculators squeezing the markets.
What a great time it should be to electrify heavy transportation. If they can do it in mining and construction, why can't transportation...
Aren't they already producing as much as they can? Which is not sufficient given that globally a significant fraction of refining capacity is offline.
Because supply side. Can't have our oil barons losing out.
Or are you saying the Ukraine drone strikes have not affected the output at a scale where it matters globally?
Is there any reason why Diesel costs more? I was always under the impression that it was a less-refined fuel therefore cheaper.
EDIT: meaning "less taxes"
Losing at war is universally bad. And long stalemated forever wars can be just as bad for both sides.
That said, the patriot is a lot cheaper replace than the things it was defending so it was a good investment even if expensive.
China has destroyed oil import demand the equivalent of annual UK oil imports in the last six months, for example. Push those oil and diesel prices up, hold them up as long as possible. Several countries have banned internal combustion vehicle imports to push the needle on the EV trajectory (Ethiopia, Laos) because they are fossil fuel poor. Global EV sales have spiked, and already exceed 25% of total annual vehicles sales (~90M units/year).
How much fossil supply chain infra must be impaired to further move the needle? Hard to say, excited to find out.
[1] https://news.ycombinator.com/item?id=49479229 (citations)
[2] https://news.ycombinator.com/item?id=49647405 (citations)
Diesel at the local garage I passed at lunchtime is £1.89 (57% more). The web [0] suggests that is more expensive than anywhere in europe other than France and Denmark for some reason.
So nowhere near "half as cheap". Throw in poor American average mileage and I suspect the price-per-mile is quite similar.
I am not interested in nominal new highs.
Still that makes very clear why Venezuela had to happen before Iran.
Incompetence or malice? Both is also possible...
In the US diesel taxes are often different from gasoline, but polluting is generally not a factor.
Jet fuel and diesel fuel come from similar parts of the barrel. Refineries can largely choose what kind of fuel they produce for a given unit of input. One barrel doesn't always split into the same fractions. There is configuration involved.
This started, I believe when fracking became a major thing (the late 2000s), because shale oils tends to have less heavy hydrocarbons then the old wells.
And the ethanol makes the fuel less valuable (energy reduction per litre) moreso than biodiesel.
I was always under the impression that a big part of the difference in cost is largely due to taxes.
While diesel is less refined, the difference isn't much. These days both are heavily refined products, and the cost to refine gasoline isn't very much per gallon.
The real answer: supply/demand is the key factor in the price you pay. Cost to create/build a product generally sets a floor on the price you pay: a business that isn't making money will stop making the product (loss leaders exist, but not a factor here).
That's the problem with hindsight theories, especially if only using a limit horizon into the past.
[0] https://www.npr.org/2022/08/31/1120422634/breaking-down-the-...
Rule of Acquisition number 35: Peace is good for business.
The main caveat is that available models are heavily weighted towards “compact” (RAV4 sized) SUVs and larger. There aren’t many little Prius/Fit/Soul type town car models around which is a bit paradoxical with that being the use case that EVs have been well suited to for the longest time.
I think cost per kilometre/lightyear/rod is close
ck2•51m ago
even if you do not drive, it affects every delivery
imagine this pattern through 2029
https://gasprices.aaa.com/
800 more days, even just a penny increase per day
we're out of $4 Million dollar tomahawks and the iranians have endless supply of $50K drones
strategic oil reserve is about to experience permanent catastrophic damage from being drained too low
sleepyguy•28m ago
Apparently salt domes have a life span, you pump water in to remove oil. The water wears at the domes and removes more salt creating a larger cavern. It's not that we pumped out so much oil lately, it's because we were pumping out little bits over the last 5 decades constantly wearing at the domes. They were created at the time to only be used in a catastrophic situation, not when ever you want to control the price of oil......
Either way, you are correct in that their life has come to an end, we will require more expensive above ground storage going forward or we can electrify.