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You may have noticed that you are spending more to fill your car’s tank.
Don’t be surprised if the price keeps going up.
The national average cost of a gallon of gas has increased by about 18 cents in the past two weeks, in the wake of the reduction in oil refining capacity during the extreme cold in Texas, according to GasBuddy. Now, a major contributor will be increased demand amid lower oil production and high oil prices – which represent more than half the price of gas.
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The current national average for a common lead-free gallon is $ 2.74. That’s $ 1 more than the $ 1.74 recorded in April 2020, when the pandemic first set in and demand plummeted, GasBuddy data shows. The states with the lowest average prices include Mississippi ($ 2.35), Louisiana ($ 2.37) and Texas ($ 2.39), while those with the highest averages are California $ (3.67), Hawaii ($ 3.41) and Washington ($ 3.08).
The cost per gallon also tends to rise in the spring, as demand increases and the seasons change to cleaner, greener gas in the summer.
There are ways to save money on gasoline – as well as things like respecting the speed limit and avoiding aggressive driving – that can translate into hundreds of dollars a year.
To start, shop around. Depending on where you live, there can be huge price fluctuations between gas stations. And even though the difference in price per gallon may be just a few cents, it still adds up.
“Many drivers just stop at the nearest pump and end up paying too much,” said Patrick De Haan, head of oil analysis at GasBuddy.
There can also be large price differences from one state to the next. For example, a gas station in Arizona costs $ 1 less than a competitor on the California state border, said De Haan. (The California tax per gallon is 82 cents and the Arizona tax is 37 cents.)
In addition, there are apps – including GasBuddy, Gas Guru and AAA TripTik – that you can use to find the best prices along your route.
It is also worth looking at the loyalty programs, which many large chains have. They are usually free and can offer discounts of pennies per gallon, said De Haan.
However, credit cards that offer discounts for gas purchases may not be the best option, unless you routinely pay the balance on the card.
“If you are not paying your bill, you end up giving the bank more money than the discount is worth,” said De Haan. “Cards work if you are paying, but not if you charge the balance month by month.”