How to save at the pump in the face of rising gasoline prices

You may have already noticed that you are spending more to fill your car’s gas tank.

Don’t be surprised if the price continues to rise.

The national average cost of a gallon of gasoline has increased by about 18 cents over the past two weeks, on the heels of reduced oil refining capacity during extreme cold in Texas, according to GasBuddy. One of the main contributors now will be rising demand amid falling oil production and high crude prices – which accounts for more than half of the price of gas.

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The current national average for a gallon of regular unleaded is $ 2.74. That’s $ 1 more than the $ 1.74 counted in April 2020, when the pandemic first took hold and demand plummeted, according to data from GasBuddy. The states with the lowest average prices are 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 increase in the spring as demand increases and stations switch to cleaner, more environmentally friendly gas for the summer.

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

To get started, shop around. Depending on where you live, there can be big price fluctuations between gas stations. And while the price difference per gallon may only be a few cents, it still adds up.

“Too many motorists just stop at the nearest pump and end up paying too much,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

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

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

It’s also worth looking into the loyalty programs, which many large chains have. They’re generally free and can offer pennies per gallon discounts, De Haan said.

However, credit cards that offer discounts on gasoline purchases might not be the best option unless you regularly pay off the card balance.

“If you don’t pay your bill, you end up giving the bank more money than the rebate is worth,” De Haan said. “The cards work if you pay them off, but not if you carry the balance month-to-month.”