How to Save Money on Auto Fuel

Americans burn more gasoline than any other nation. We should conserve and save.

With the price of oil dropping through the floor you might question the value of an article that tells you how to save money on gas.  But let me point out that the current decline in petro prices is due to a production war between the United States and members of OPEC.  After decades of dependence on high-priced foreign oil the US has figured out how to produce almost as much oil as it needs by using the controversial "fracking" method of extracting oil from shale rock.



I don't want to get into the debate over the safety of fracking.  It's here, we're doing it, and it has brought OPEC to its knees.  This is some sweet payback for the oil crisis of the 1970s.  But this is only temporary.  Saudi Arabia's game plan is to allow oil to become so cheap that the US fracking industry collapses from high expenses.  Fracking is not cheap, and it only pays for itself when the price of oil is high.  So we are in a competitive war where it comes down to who has the deepest pockets: Saudi Arabia with $750 billion in cash reserves or the US oil industry.

Meanwhile consumers like you and me are enjoying the cheapest gas prices at the pump in a long, long time.  This is exactly the kind of environment that will lead people to go out and buy expensive gas-sucking SUVs and trucks.  So the first step toward saving money on vehicle fuel is to NOT buy that bigger, more gas-hungry vehicle unless you really, really need it.

But even if you're ready to buy that big $40,000 vehicle you can still save money.  You need to form good habits now while gas is still cheap and declining so that when prices go back up in 1-2 years you won't have to radically alter your lifestyle.  For example, if you commute to work you will want to find ways to save time (and gas) when driving through rush hour traffic.  But you can do more than that.

In the next 2 years you may be able to find a job closer to where you live, or you may be able to move to a neighborhood that is safe, comfortable, and close to the kinds of jobs you want to apply for.  The idea is to reduce your commuting distances while the price of gas is low because most other people won't be thinking that way.  If you can take public transportation you may find it hard to justify giving up your private commute, but look at the worst-case numbers.  If gas goes to $1.50 a gallon where you live, can you still use public transportation for less money?

If you don't already use a Website like Gas Buddy then I suggest you become familiar with it.  This great resource has helped me save thousands of dollars on gas since I first heard about it years ago.  That's right.  I said "thousands of dollars".  You may think that saving 10 cents a gallon doesn't add up to much, but it can add up when you travel a lot as I do.  Saving $1.50 on a tank of gas when you fill up twice a week amounts to $78 a year.  But when you drive out a tank of gas every day, five days a week, the savings begin to add up.  And I don't have a 15-gallon tank; I have a 30-gallon tank.  Gas Buddy has helped me save about $500 a year for several years.

Okay, maybe you don't drive that much but in my book every little bit helps.  Take the opportunity over the next 2 years to buy a more gas-efficient vehicle, relocate to a neighborhood with shorter commutes to work, school, and fun, and start practicing good gas management and purchasing habits.

When the day of reckoning comes, and it always does, most consumers will not be prepared for sharp increases in gasoline prices.  You can't avoid paying higher prices in the future but you can minimize the impact that the shock of having to pay for expensive gas again will have on you and your family.