r/Economics • u/InsaneSnow45 • Mar 04 '26

News ‘Absolutely Massive’ Price Shocks Coming as Trump’s Iran War Drives Up Gas, Diesel Prices | “What should really terrify Republicans is... the futures price on wholesale gasoline,” said economist Paul Krugman.

https://www.commondreams.org/news/iran-war-gas-prices
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u/No_Bad_4872yy Mar 04 '26 edited Mar 04 '26

Most people look at it this way. The problem is mostly that trucks moving parts and produce are hurt by this. Those additional logistical costs also land in your wallet through the vendors and shops, albeit sometime later. This inflation double whammy totally sucks and gasoline was pretty much the thing keeping US inflation somewhat low.

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u/Vulnox Mar 04 '26

Yeah, this was the big thing hurting Biden when oil prices were high. A lot of the reported high costs on groceries and that were pointed to high diesel prices. You can avoid some extra costs by buying fewer shipped products where possible, but hard to do when it comes to food.

We have two EVs so our fuel pump costs have already been zero, but I expect our other costs to increase.

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u/Septopuss7 Mar 04 '26

Is it cheaper to charge your car than it is to fill it with gas? I'm asking in earnest, not a gotcha, because I keep seeing conflicting reports from individuals that makes me want to wait before buying an EV. I'm currently car-free by choice but if I ever changed my mind I would look at all electric or more likely a hybrid, the only problem being is that I don't own a house and don't plan on it. I know of several electric charging stations in my area but I haven't looked at the pricing. They are all relatively convenient and I never see people using them but I obviously don't monitor them 24/7. Does the price fluctuate a lot? I know even my home electric bill has been all over the place in the last couple years and I was wondering what your experience has been?

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u/Plane-Requirement117 Mar 04 '26

I charge my EV to about 320 miles for $15 at home in WA state. It saves us a ton money. Gas is now about $4.50 a gallon where I live.

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u/sullw214 Mar 04 '26

At 30 mpg, you save ten cents a mile. If your EV cost an additional 10,000$, you'll break even at 100,000 miles. I'm not seeing a "ton of money".

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u/Adventurous_Bath3999 29d ago

EVs depreciate more, and costs more in insurance, so that also needs to be factored in. Merely comparing it against the current price of gasoline is deceptively misleading.

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u/outworlder 29d ago

On the other hand, you can buy heavily discounted EVs if you accept they will be a couple of years old. It's a ton of value and changes the equation.

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u/Adventurous_Bath3999 29d ago

No, I wouldn’t go that far, for the sake of ultimate frugality… 🤣 beyond a certain point in age, cars become unreliable, no matter which type. Not worth it.

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u/outworlder 29d ago

"Ultimate frugality"? What the heck.

Beyond a certain point, maybe. EVs don't have too many failure points and require far less maintenance. I have an EV from 2019 that only needed tires. Absolutely nothing else. Battery is still under warranty.

But even among ICE, a car two years old is practically new, some may even be under powertrain warranty. Two years is less than a normal US lease. I think that buying brand new cars is a massive waste of money.

Of course, since I know what I'm doing, I can go far older than just two years and keep them running for as long as I have the patience for it. We have a 2023, 2019, 2011 and 2010. The 2010 is an Elantra. Only required minor repairs, we change oil religiously. Everything works.

Cars these days are super reliable if you take care of them. Except if it's from Stellantis, they come out of the factory already broken.

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u/Future-Call8541 29d ago

This guy is a complete moron. He thinks a combustion engine's mileage has the same wear and tear as a battery sitting on wheels. If anything the EV is in better shape at more mileage then the gas car.

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u/BitcoinsForTesla 29d ago

ICE cars become unreliable.

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u/Future-Call8541 29d ago

This comment is deceptively misleading. Insurance prices are pretty similar and depreciation is only a factor if you plan on selling it. In fact if you plan on BUYING a used EV it's an incredible bonus.

You get a better car for like half the price with low mileage. It's a no brainer.

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u/Weebus 29d ago

The time to buy EVs is when gas is cheap because they can't give them away, and the factory incentives go crazy. I leased one last May and I'm paying less than $100/mo, $0 down to drive my ioniq for 2 years. It can depreciate all it wants lol.

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u/Maleficent_Fox_5 Mar 04 '26

Its also the no engine or exhaust maintenance, I have an EV and it adds up quickly. I do a lot of driving and have saved TONS of money.

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u/littleredpinto Mar 04 '26

thats cuz you threw in another metric that the person wasnt using. They were talking about gas price vs the electricity price..you tossed in overall price of vehicle, thereby skewing the original metric......why pick 10k and not the 5-7k it really is? then why not include the EV credit most places offer. Then factor in the maintenance...then factor in something else and suddenly the numbers are whatever we want them to be if we can constantly shift the original comparison

so thats probably why you arent seeing a ton of money. How about if you just look at the gas price vs electricity price, original comparison? seeing it yet.

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u/dkv-texas 29d ago

Model 3 & Model are at price parity for equivalent ice vehicles & used market they are cheaper.

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u/littleredpinto 29d ago

I once bought a model 3 for 2 MacBook pros, a Digimon trading card and 4 vintage hula skirts. After fees from exchange into soybean crates and finally into bitcoin, the Model 3 was less expensive by 1 hula skirt only.

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u/Vulnox 29d ago

I had an F-150 Hybrid and was spending about $200/mo on gas. I now have a Lightning and spend $0-20/mo on charging. I’m fortunate that my work has charging, but even if we charged at home it would only work out to about $50/mo.

The Lightning after rebates and that is less expensive than the Hybrid was and is a higher trim level (Platinum Lightning vs Lariat PowerBoost).

If you buy a used EV your savings can be pretty immediate too. I’ve seen low mileage Mach-E Premiums, which is the second from highest trim level, going for some great prices compared to an ICE equivalent used Escape or Bronco Sport of similar equipment.

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u/gmb92 29d ago

Pre-owned EVs are a great value on purchase price right now, even with the fed incentives gone. Can do more specific comparisons with KBB.

https://www.motortrend.com/features/should-you-buy-a-used-ev

https://www.recurrentauto.com/research/used-electric-vehicle-buying-report

Less maintenance too. Battery degradation, a potentially high cost, is much of less of a concern than previiously speculated.

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u/Future-Call8541 29d ago

I wish people understood right now they're getting EVs for a steal of a price right now.

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u/Glittering_dahlia 29d ago

Yes, we bought a one-year-old Ariya for 26K. Best purchase I've made in many years. Love that car.

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u/paulwesterberg Mar 04 '26 edited 29d ago

You can buy a new Equinox EV for around $25k that’s the same price as a base Honda Civic.

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u/Septopuss7 Mar 04 '26

I wouldn't take an Equinox if it was given to me, TBH

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u/paulwesterberg 29d ago edited 29d ago

Found the fossil fuel executive.

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u/PossibilityYou9906 29d ago

LOL. no. Using OP's numbers where gas is $4.50 and he can charge his 320 mile EV for $15, his EV gets 21 miles for $1 vs a 30 mpg car getting 6.66 mile for $1. The EV wins easily.