How Much Is Your Gas?

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Gas prices can sometimes seem high or low depending on the time. Right now, I would agree that gas prices are too high. Especially diesel which, where I live, is snuggling up to almost $7 a gallon. But gas also suffers a "perception" problem as well. Because a lot of the time we only look at the price at the pump, and then memory kicks in, and we start saying things like, "Remember when gas was X? Gosh, those were the days." Regular unleaded where I live right now has nestled against $4.79 for several weeks. Okay. About that "perception" thing. If we look back to 1980, the price on the sign said gas was $1.25 per gallon. Sounds great, right? But how much was $1.25 in today's dollars? That matters because it asks a very important question. Based on how much you EARNED back then compared to now, and based on what the value of a dollar was back then, did you actually pay $1.25, or did that $1.25 take up a higher percentage of your earned money? The ACTUAL cost of $1.25, adjusted for inflation, would have cost you $4.70. That's only 9 cents cheaper than what I am paying today, in 2026. I'm not saying that makes my $4.79 not so bad. I'm simply saying gas really wasn't cheaper in 1980 than it is today even though it looks that way. There's another thing to consider here, because oil companies often get a bad rep. "They're gouging us!" people like to shout to the moon. But are they really? Consider this: the average margin for an oil company is 8%. What's the markup (or margin) on a Big Mac? 31.5% That means for every dollar an oil company takes in for a gallon they make 8 cents. McDonald's, on the other hand, keeps almost 32 cents. The point there is, McDonald's makes far more on a hamburger than ExxonMobil makes on a gallon of gas. Again, perspective.