Will gas prices go down?

The heat wasn’t the only thing rising in the summer of 2022. Inflation impacted the cost of food, energy, apparel, and shelter and had consumers paying more for items such as chicken, eggs, and margarine. This increase in cost was most evident in gas prices, whos’ average price rose 59.9% between June 2021 through June 2022.

We saw a little bit of relief at the pumps at the end of the summer. But, with more people returning to work, and many jobs transitioning back to in-office work, consumers are on the road more than they have been in the last two years. The average price of gas is beginning to creep back up. The increase in gas prices, along with other inflation-related price hikes, is putting a strain on all of us week after week, and leaving us asking ourselves “when will gas prices go down?”

Why did gas prices get so high?

According to the federal Energy Information Administration, the cost for each gallon of gas is broken down into four categories: taxes, distribution and marketing, refining, and crude oil.

Data source: U.S. Energy Information Administration, Gasoline and Diesel Fuel Update

What is being done to make gas price go down?

 Luckily, we are beginning to see gas prices go down nationwide, providing some relief to consumers. In August, the average cost of gas in the United States fell below $4 for the first time in several months. One of the reasons we are starting to see gas prices go down is that people are being more conscientious in deciding when to drive. People are taking fewer road trips; more folks are carpooling; demand is going down. When the high price of gas brings the demand down, oil production is able to catch up. As oil reserves are going up all over the world, prices are dropping.

How long will gas price continue to go down?

We’ve all seen gas prices rise and fall before. Even though we are starting to see some relief at the pumps, many of us are nervous about what happens next. Will they go back up?

There is a chance the recent dips in gas prices will be short-lived. Currently, refining capacity in the U.S. is about a million barrels a day below what it was prior to the pandemic. However, as more people began driving, the result was a sudden high demand for oil. Even with refineries meeting capacity, it is very difficult to keep up with the need. Further, the sanctions related to Russia’s war in the Ukraine are still in place, and their full effects may not yet have been felt.

How can I save at the pump?

There are more ways to save money than changing driving habits. Here are just a few ideas that can help, as well as some ways to improve your vehicle’s fuel efficiency!

Track local prices

GasBuddy is a site well-known for tracking gas prices in the US, and provides data for the US Office of Energy Efficiency & Renewable Energy’s gas tracker pages. GasBuddy also has an app available for Android and iOS that finds real-time fuel prices at more than 140,000 gas stations in the United States and Canada.

Fuel Rewards Programs and Cash Back for Gas Credit Cards

Shopping for groceries can also save you on gas costs if you take advantage of fuel rewards perks. Many grocery stores nationwide offer programs where customers can use points earned while shopping to cash in on savings at the fuel pump.

Many gas stations offer credit cards or reward programs that give a percentage of the purchase back to the customer.  Also, many major credit card companies also offer gas rewards credits and don’t limit the customer to a certain gas station brand.

Pay with cash

Some gas stations are required to put the credit card price (which includes a surcharge) as the advertised price on their signs. Using cash eliminates the surcharge and allow you to pay below the advertised price.

Monitor your tire pressure

Knowing how to check and maintain your tire pressure not only improves your fuel efficiency. It is also a great preventative and safety measure. Tire pressure can change with the temperature, so it’s a good idea to check yours regularly.

Map your trip

Many GPS apps have an option to choose routes that avoid gas guzzles such as hills or traffic jam.  When entering your destination into your app, check for the “fuel-efficient route” option to get you there most efficiently.

Club memberships with discounted gas prices

Costco, BJs, Sam’s Club, and Walmart Plus all offer discounted gas prices to members, with savings ranging from 5 cents to 25 cents a gallon. Customers pay a club membership fee month to month, but these savings can offset the membership cost. Be prepared to wait – the lines at these pumps can be long!

 

Inflation has impacted every aspect of our lives. From buying groceries, to filling up our tanks, we are feeling the strain of higher costs each week and month. While it is a relief to see the numbers at the pump going down, it’s hard to say when gas prices will return to levels we find easier to manage.

Another way to save money is to spend less on car insurance by getting a quote with Elephant. Our process is free, simple, and super quick. There’s nothing to lose, other than higher payments you’re currently spending on your car insurance!

 

Article last updated on November 15th, 2024 at 1:23 pm