High Gas Prices and Ways to Save

If you feel like you need to take out a mortgage to afford these outrageous gas prices, you’re not alone. Yep, we all miss the cheap gas prices from the quarantine days of 2020 back when we had nowhere to go. Now that we’re seeing prices higher than they’ve been in years, the pain at the pump is really starting to hurt our budgets. The average price for a gallon of gas hit an all-time record high in March, breaking the old record from 2008 (more on that in a second).

But don’t toss your car keys into the trash and start walking just yet. We’ve got some tips to help you feel less pain at the pump each time you fill up. But first, let’s dig into the big question on everyone’s mind: Why are gas prices so high these days?

Why Are Gas Prices So High?

If you guessed a combo of inflation and the Russia-Ukraine conflict, you win. Let’s talk inflation first. For months now, the crazy high inflation rate (7.9% over the previous 12 months—the highest in 40 years) has been playing a huge role in driving up gas prices.  But the war between Russia and Ukraine really threw extra gasoline onto the fire here.

On March 8, 2022, the average price for a regular gallon of gas hit an all-time high of $4.17.  Gas prices jumped 11 cents overnight and over 50 cents since the week before!  It’s insane. And also on that same day, President Biden signed an executive order to ban the import of Russian oil, natural gas and coal to the U.S.  So expect gas prices to keep rising. In fact, the average gas price is already sitting around $4.33 right now.

But trying to figure out why gas prices are so high doesn’t just stop there. Prices at the pump are being impacted by the cost of crude oil going up too (thanks again, inflation and war). In case you didn’t know, Russia is a major exporter of oil, and the war has made prices spike over here in the U.S.

The cost for a barrel of crude oil runs around $110 now.  Oh, and let’s not forget about the Colonial Pipeline being hacked in 2021—that really threw a wrench into the supply chain.

Okay, now’s a good time to take a big, deep breath.

So, what’s being done to help lower gas prices? Well, in November, President Biden told the Department of Energy to release 50 million barrels of oil from the Strategic Petroleum Reserve (the U.S. emergency stash of underground gasoline), but it didn’t do much to help gas prices to ease up.  As of March 2022, the U.S. and 30 other countries are releasing 60 million barrels of oil from stockpiles.⁹ The hopes are that this will soften that crazy price surge, but no one even knows if it’ll really make a difference when it comes to gas prices, so don’t hold your breath.

Look, it’s true you can’t control gas prices. But you can control how you adjust your budget to find more ways to save money on gas. It’s not a lost cause! As much as we all want to run up to the sign at the gas station and roll back those killer price numbers, we can’t. But there’s still something you can do about it. Here are 11 ways tosave a little extra money on gas.

11 Ways to Save Money on Gas

1. Shop around for the best gas prices.

Sure, sometimes you’re riding on empty and you’ve got to get gas as quick as possible. But if you plan ahead, you can really save money on gas. One way is to use an app like GasBuddy that searches your local area to find the cheapest gas prices around. Or you can pay attention on your way to and from work or the kids’ school to see what places offer the best price.

2. Combine your errands.

Don’t make a special trip to get milk when you can just pick it up on the way home from work. You can cut back on trips to the grocery store in general by meal planning and keeping a list of all the household essentials you need. The fewer trips out, the less you pay in gas.

3. Use that cruise control.

Stumped on how to save gas while driving on the open road? If you’re spending lots of time on the interstate, here’s a simple tip: Turn on your cruise control and save on gasoline and leg cramps.

4. Keep your tires inflated.

There’s a savings myth out there that overinflating your tires can save you money on gas. The reality is, this is a bit of a Goldilocks situation. Overinflating doesn’t help anything, and underinflating can actually hurt your gas mileage. But nailing the recommended tire pressure for your car is like that perfect bowl of porridge—just right. And those just-right savings will add up over time.

5. Ditch the extra weight.

Take everything off your roof rack and unpack the trunk or cargo space. Turns out, the more your car is weighed down, the harder your engine has to work to lug all your junk around. And a harder-working engine is a gas-guzzling engine. So, clean out your car, and enjoy less clutter and fewer trips to the gas station. Who knew figuring out how to save on gas was as simple as getting all the junk out of your car.

6. Join gas rewards programs.

Hear us loud and clear: We aren’t talking about credit card “reward†points here. (Ew.) We mean that your grocery store may offer gas rewards—discounts on gasoline for buying stuff you have to buy anyway. You might have to sign up for a rewards card, but these are often 100% free and 100% worth it. Cheaper gas from the place you already go to stock up on snacks? Yes, please.

7. Join a warehouse membership.

Here’s how to save on gas with money you’re probably already spending at those bulk-buy stores (you know the ones). Some warehouse stores offer lower gas prices to members. Now, that membership will cost you something, but if you’re already a member, you might as well take advantage of that extra savings. And if you’re not a member, before you commit to anything, be sure the annual fee is worth it to save money on gas and other things (like all that bulk cereal shopping).

8. Stop buying premium.

Unless you have a fancy car with a manual that says it needs premium gas, the regular unleaded gas option works just fine. Switching to regular gas is probably the easiest way to save 20­ to 60 cents per gallon, and most drivers don’t even notice the difference. Just be sure you double-check that premium gas isn’t a deal breaker for your car­—or else things could get ugly.

9. Pay with cash.

Cash is king—even at the pump! Some gas stations charge a lower price per gallon if you pay with cash­. It’s their way of skipping the processing fees. Sure, you’ll have to actually walk some extra steps to pay the cashier, but it’s worth it if you can save a few bucks every time you fill up.

10. Fill up earlier in the week (and never on weekends).

Monday is typically the cheapest day of the week to fill up your tank. If you can’t make it on Monday, try for Tuesday or Wednesday. And whatever you do, avoid the gas station on Friday­­, Saturday and Sunday if you want to save money on gas.

11. Turn your car off while waiting.

Here’s a simple way to save money on gas—turn the car off when you’re not actually driving it. Think about it. You’re sitting in your car for 5, 10, maybe even 15 minutes waiting on someone else to get in—and probably jamming out to your favorite song. We’ve all been there. But next time, turn the car off. Keeping your car running wastes gas­ even if you’re not driving anywhere!

You need to budget for whatever extra cash you get from using these gas savings tips. Don’t worry—a budget’s a great thing. It lets you tell your money where to go! Oh, the power.  Get ready to make saving money (on gas and in life!) a no-brainer. Try the free easy-to-use budgeting app, Mint.  It’s not good news that those gas prices are going up.  However, you can tackle them head on by having your budget ready to go. You can do this!

By Ramsey Solutions