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Gas prices may be down, but the savings don’t have to end there. Read on to learn more.
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Last spring and summer, many Americans found themselves struggling to keep up with rising living costs. And gas prices were a big part of the problem.
The Ukraine crisis drove the price of gas upward in a meaningful way, so much so that in mid-May of 2022, the average price for a gallon of gas was a whopping $4.47 a gallon on a national level. Thankfully, gas prices were down 21% from a year prior as of mid-May, and were almost $1 cheaper per gallon at an average price of $3.54.
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But while gas prices may be less burdensome in general, there are still steps you can take to eke out extra savings in the course of filling up your car. Here are a few strategies you can employ to fuel your vehicle for less.
1. Pay cash
Many credit cards offer bonus cash back at the pump, so it can be enticing to swipe a credit card when you’re filling up your car. But while paying with a credit card might result in a cool 2%, 3%, or 4% back on your purchase, you might also end up paying something in the ballpark of $0.10 more per gallon for the privilege of using a credit card. So all told, it pays to compare prices, crunch the numbers, and see how much savings you can reap by paying for gas in cash instead.
2. Shop around
It’s one thing to drive many miles out of your way to fill up your car at a lower price per gallon. In that situation, what you save on gas, you might spend by hauling over to another neighborhood. But if you live in an area with multiple gas stations in close proximity, then it pays to use an app like GasBuddy to compare prices before choosing one station over another. You may find that driving around the corner saves you a few dollars if your tank is close to empty.
3. Take advantage of your Costco membership
If you’re a Costco member and tend to shop there frequently, it could pay to time your shopping trips with when your tank needs a refill. Costco isn’t guaranteed to have the cheapest gas in town, but many members find that it does. So if you’re heading there anyway to do your grocery shopping, you might as well fill up your tank and take advantage of the lower gas prices Costco is known for.
It’s nice that the cost of gas has reached a more moderate level. But that doesn’t mean you shouldn’t make an effort to save even more. For a lot of people, money is still pretty tight due to inflation. So if you’re able to save a few dollars here and a few dollars there at the pump, it could actually go a long way.
And even if you’re doing fine financially, why pay more for gas when there are options to save? Spending $10 less on gas each month could cover a couple of morning lattes or late-night pizza slices. So you might as well free up that cash if you can.
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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.
