Ways to Save Money on Gas

Tips on Reducing Your Cost at the Pump

© Brian Tubbs

How can you save money on gas? With fuel prices rising, consumers want to know how they can save money on gas and why gas is so expensive.

Gas prices are rising. And consumers want to know why and what they can do about it. This article provides some practical tips on how you can save money on gas. Some of these tips will help you specifically save money on gas and some will help the "bigger picture" that affects gas prices worldwide and specifically here in America.

Why Is Gas So Much Money?

Gasoline is one of the main products refined from crude oil. Its primary use is in automobiles and light trucks, though it is also used in other equipment (tractors, RVs, boats, etc.). According to the Energy Information Administration (EIA), the gas is piped from the refineries into a "massive distribution chain serving 168,987 retail gasoline stations in the United States." And the price? The EIA explains:

The cost to produce and deliver gasoline to consumers includes the cost of crude oil to refiners, refinery processing costs, marketing and distribution costs, and finally the retail station costs and taxes. The prices paid by consumers at the pump reflect these costs, as well as the profits (and sometimes losses) of refiners, marketers, distributors, and retail station owners.

The most important factor in the price you pay for gas at the pump is the cost of crude oil. From the mid-1980s through the early 2000s, the inflation-adjusted price of crude oil remained generally below $25 per barrel. Then, everything began to change. By October 2007, the price was climbing to over $90 per barrel. And, as of May 2008, prices are reaching toward the $130 per barrel mark.

In addition to the cost of crude oil, there are the other costs (refinement, distribution, taxes, etc.). And the combination of all these factors is spelling pain for the American consumer. While the pain is felt worldwide (including in developing countries like India and China), US consumers are particularly feeling the pinch, given the cultural significance of the automobile in the US.

How to Save Money on Gas

What can an individual American consumer do to save money at the pump? Here are a few tips:

What You Can Do as a Citizen

The purpose of this article is not to get too political, but there are some things you can do to help the "bigger picture."

By looking at the situation as an individual consumer as well as a citizen, you can help make a difference in not only your own pocket book or wallet - but also in society overall.


The copyright of the article Ways to Save Money on Gas in Personal Budgeting/Finance is owned by Brian Tubbs. Permission to republish Ways to Save Money on Gas must be granted by the author in writing.




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