Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of John Heinbockel with Goldman Sachs. Please proceed.
John Heinbockel - Goldman Sachs
Obviously, the merchandise comp is showing some life, gallons are not. As you see the consumer in your markets, is there any sign that we've bottomed and are seeing some better behavior out of your consumer? How low do you think gas prices have to go to see some improvement in comp growth gasoline?
Frank Paci
We've seen certainly seen an improvement so far in Q3. This quarter so far we're actually positive in gallon comps, including diesel, which has continued to be a drag. So, we've certainly seen that metric improve here within the last two months.
Again, this is what we said in our last call, is we expected as we move through the year and the comparisons got easier, we'd start to see that. Obviously, the difficult piece is where is the economy, in general, going? If you see the economy in general bottom as we've talked about as we start going against these really high gas prices last year, I think there is an opportunity there.
Pete Sodini
The one specific we look at closely is the Department of Transportation miles driven. That has continued to come down from last year. We're seeing some benefit off of that.
As Frank mentioned, our comps on gasoline this quarter are slightly positive. Diesel has been a laggard, but as you're well aware, diesel is the leading indicator when you are getting into a recession or whatever we're calling it. Conversely, we think it will be one of the positive ones whenever this thing bottoms out and you start to see some economic rebirth.
John Heinbockel - Goldman Sachs
Stripping out the excise tax impact, the merchandise comps improved also in the third quarter?
Frank Paci
Yes. They've improved versus what was in Q1 very similar to the trend that we've seen quarter to-date similar to what we've got in Q2.
John Heinbockel - Goldman Sachs
Secondly, what do you do with your cash forward? Probably difficult to buy back a lot of debt as much as you'd like. So when you look at acquisitions, what's the volume of interesting assets that are coming in front of you? Are a lot of those major integrated oil companies getting out of the retail business?
Pete Sodini
We continue to see an increase in the number of things coming before us. Some of them, like the Mobile acquisition, we think are being acquired at an attractive price and it fits geographically very nice into it. We see a lot of other stuff. One way that I can describe it is trashed or distressed, and we don't spend a lot of time on it.
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