The price of gas is rising. How to save at the pump

Don’t be surprised if filling your car’s tank at the pump takes up an increasing chunk of your budget.

Amid already soaring gasoline prices, the average price you pay per gallon could rise in the coming weeks, according to GasBuddy.com.

In addition to high crude oil prices – which accounts for 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 offline due to extreme cold in the lower half from the USA.

“Much of the expected rise in gas prices will likely take place in the coming days,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

The current national average for a gallon of normal unleaded is $ 2.58 and could soon be anywhere from $ 2.65 to $ 2.75. That would put it about $ 1 above the $ 1.74 counted in April 2020, amid plummeting demand as the pandemic hit.

In addition, costs per gallon also tend to rise in the spring as demand increases and stations switch to cleaner, more environmentally friendly gas for the summer.

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There are ways to save money on gas – in addition to things like sticking to the speed limit and avoiding aggressive driving – that can translate into hundreds of dollars a year.

For starters, shop around. Depending on where you live, there can be large price fluctuations between gas stations. And even if the difference in price per gallon is maybe just a few cents, it still makes sense.

“Too many drivers just go to the nearest pump and end up paying too much,” said De Haan.

There can also be wide price differences from one state to another. For example, a gas station in Arizona is $ 1 less than a competitor across the California state line, De Haan said. (California’s tax per gallon is 82 cents and Arizona’s 37 cents.)

Additionally, there are apps – including GasBuddy, Gas Guru, and AAA TripTik – you can use to find the best prices along your route.

It’s also worth checking out loyalty programs, which many major chains have. They are generally free and can offer discounts of cents per gallon, De Haan said.

However, credit cards that offer discounts on gas purchases may not be the best option unless you routinely pay the card balance.

“If you don’t pay off your bill, you end up giving the bank more money than the discount is worth,” says De Haan. “The cards work when you pay them off, but not when you keep track of the balance from month to month.”