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Don’t be surprised if filling your car’s tank at the pump continues to swallow up an increasing part of your budget.
Amid rising gas prices, the average price you pay per gallon may jump in the coming weeks, according to GasBuddy.com.
In addition to the high prices of crude oil – which represents more than half the price of gas – as demand recovers from a pandemic-induced decline and production remains lower, millions of barrels of refining capacity are now shut down due to extreme cold in the lower half of the USA
“Much of the projected increase in gas prices is expected to occur in the coming days,” said Patrick De Haan, head of oil analysis at GasBuddy.
The current national average for a common lead-free gallon is $ 2.58 and could be somewhere between $ 2.65 and $ 2.75 soon. That would put him about $ 1 above the $ 1.74 in April 2020 amid declining demand as the pandemic set in.
In addition, the cost per gallon also tends to increase in the spring as demand increases and seasons change to cleaner, greener gas in the summer.
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There are ways to save money on gasoline – plus 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 De Haan.
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 in the entire state of California, 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.
Many drivers simply stop at the nearest pump and end up paying too much.
Patrick De Haan
Head of Oil Analysis at GasBuddy
It is also worth looking at the loyalty programs, which many large chains have. They are generally 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’re 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.”