Gas Prices and Your Budget

Gas prices don’t look like they will be coming down anytime soon—at least not as far as many of us would like.

With the summer season fast approaching, I thought it might be helpful to send over some information on why prices are rising, what you can expect to pay this summer, and a few tips for keeping costs as low as possible.

Why gas prices are rising

Higher gas prices can be traced back to the COVID-19 pandemic, but prices have been pushed even higher recently by the Russo-Ukrainian war, said Patrick De Haan, GasBuddy’s head of petroleum analysis, to CBS.

In addition, the post-pandemic demand for gas, cuts to oil production, and U.S. sanctions on Russia (and their impact on the global market) are holding gasoline prices high above normal.

Gas Prices and Your Summer Budget

Americans are already trimming the grocery budget; it now appears the gas budget is next in line. According to one Wall Street estimate, a typical family may need to find an additional $2,000 in the budget this year to pay for gasoline.

This summer, the average per-gallon price could reach $5. It already has in some areas of the country, such as in California, where some drivers reported paying $5.75 per gallon in April 2022. That is to say, if you’re paying anything south of $5 per gallon, consider yourself a tad lucky, at least for this summer.

How to Offset Higher Gas Prices

Here are 4 ways you can offset higher gas prices this summer:

1. Check out apps like Waze and GasBuddy. If you’re not a Waze user, you should be. Not only does it help you get from point A to point B quickly and safely, but it can also locate the cheapest fuel nearby. One unique feature with GasBuddy? You can search for gas based on fuel type.

2. Look into joining a warehouse store: Places like Sam’s Club, Costco, and BJ’s offer discounts on fuel. The average discount is around $0.10 less per gallon than other gas stations. With a basic membership running around $50 per year, joining for the gas savings alone might make sense. The only hiccup? The stations are only found at warehouse locations.

3. Time your fill-ups. Experts also say the best days to fill up are Mondays and Tuesdays. That’s when gas is cheapest during the week. Also, consider “stacking” your daily outings, so you don’t backtrack all over town and use more fuel than you need to. Another idea? Carpool whenever you can or take public transit.

4. Consider E15 gasoline: On April 12, President Biden announced an emergency waiver allowing year-round sales of E15 gasoline, which contains a 15% ethanol blend. Its sale is typically prohibited from June to mid-September because of air quality concerns. According to the White House, E15 can save consumers around 10 cents per gallon on average, so the next time you’re at the pump, look for E15 and save.

Gas prices aside, I hope you and your family have a wonderful summer enjoying the people, places, and activities you love the most.

Gas Prices and Your Budget is the topic of this week’s podcast at Missional Money. Whether you’re driving, walking, or flying to your destination, I want to help you Make Your Money Count. Subscribe. Enroll. Update Your Plan today.

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