How to Pay for Gas and Everything Else

The national average price of regular gas was $3.91 last week. The all-time record high was in July 2008 at $4.11 a gallon. I predict that gas will reach $5 a gallon by the end of the summer. Some states are already paying more than $4 a gallon for regular gas such as Alaska ($4.20), California ($4.23), Connecticut ($4.20), New York ($4.12) and the average price in the District of Columbia is $4.11. If gas prices continue to soar this will cause major financial problems for many Americans.

When gas prices soared in 2008 Americans protested and voiced their concerns. Does any care that gas prices are high or it is just me? I understand the history and fundamental conditions that cause gas prices to rise but does that make it right. Americans are still trying to recover from the effects of the recession in 2008. Approximately 1,000,000 Americans filed for personal bankruptcy in 2010. Many more Americans are living paycheck to paycheck.

The cost of gas has crimpled many Americans. For SUV and truck owners getting gas can be as expensive as a car payment. Here are 15 tips to help save money on gas which will free up money to help pay for other monthly expenses:

1. Compare Prices. Comparison shop by using sites such as gasbuddy.com to find the cheapest gas price in your area.
2. Keep your trunk empty. Remove heavy and unnecessary items from your trunk. Traveling with a lighter load helps improve your gas mileage.
3. Revving. Avoid revving or idling you engine over 30 seconds. Avoid waiting in long drive-thru lines.
4. Driving. Drive the speed limit and accelerate gradually. This reduces the amount of gas needed.
5. AC. Limit using the a/c, roll down the car windows to get air and save on gas.
6. Regular maintenance. Perform regular maintenance on your car at the scheduled intervals, make sure you get regular tune-ups, oil changes, check tire pressure, air filters, and check your tires for wear. Don’t ignore the check engine light. This will improve gas mileage and save you money in the future.
7. Getting gas. Fill your gas tank up early in the morning or in the evening when it’s cooler to reduce evaporation. Avoid topping off. epa.gov/air/actions/drive_wise.html.
8. Skip the fancy tires. When your fancy tires wear out buy the standard tires that were on the car when you purchased it. This will improve gas mileage. The standard tires also provide a better ride especially on the highway.
9. Carpool. Offer to pick up co-workers or friends who work near your job. Make sure you charge enough money to cover the increasing costs of gas and inform your carpool riders that the price may increase as gas costs increase.
10. Prepaid gas card. Purchase a prepaid gas card. Some prepaid gas cards may have an expiration date and/or inactivity fees but depends on the company. Chevron, Texaco, Shell and BP prepaid gas cards do not have an expiration date and do not charge inactivity fees. You can use the site mygallons.com to purchase a prepaid gas card at a fixed price.
11. Downgrade. Trade in your expensive car for a cheaper car or get a more fuel efficient car. This will save you money which can be used to pay down debt, pay for necessary household expenses or save for an emergency fund.
12. Combine Trips. If possible combine nearby trips on the same day to reduce gas usage.
13. Businesses and fleet managers can comparison shop and use fuel banks to save money on gas at www.fuelbank.com. Use the savings calculator to see how much money you save using a fuel bank.
14. Protest. Write your congressman and the White House and demand lower gas prices. Also, write the major oil companies such as BP, Shell, Sunoco, Texaco, Chevron and ExxonMobil and demand they lower their gas prices.
15. Reduce spending in other areas to make sure you have enough to pay for rising gas costs.

Does Unrest in Other Countries Equal High Gas Prices

Gas prices are rising because of the turmoil in Libya. According to the Department of Energy Libya exports 85% of its oil to Europe and only exports about 3% of its oil to the U.S. However, since Russia provides us with oil which is obtained from Libya we are affected. Luckily Russia is only the 13th provider of oil to the U.S. The top ten countries that export oil to the U.S. are Canada, Mexico, Saudia Arabia, Nigeria, Venezuela, Iraq, Algeria, Columbia, Angola and Brazil.

The war in Libya affects the oil market and many foreign countries are nervous as well as investors and oil companies who fear that wars will erupt in other foreign countries that supply oil to the U.S. The war in Libya has stopped production of approximately 2% of the world supply. Saudia Arabia has increased production since the war began to help with demand.

Unrest in the Middle East and other African countries such as Saudia Arabia, Iraq, Algeria, Angola, and Kuwait that supply oil to the U.S. has also contributed to the increase in gas prices.

The U.S. consumes only 25% of the world oil supply. If the war in Libya continues and oil production remains halted, Europe and other countries would have to get their oil supply from other countries which will result in an increase demand which results in higher gas prices for the world.

There are other factors that contribute to higher gas prices. Some gas stations are forced contractually to raise their prices as soon as oil companies raise their prices. Some gas stations owners anticipate prices will rise and raise their prices in advance to prevent losing money in the future.

Another factor that contributes to high gas prices is the value of the U.S. dollar usually caused by a bad economy indicated by high unemployment rates and lowering of the interest rates by the federal government. When the value of the U.S. dollar decreases, foreign countries can get more for one U.S. dollar. As people in other countries buy more gas, the demand continues to increase which drives up the gas price. All we can do is hope that wars in the Middle East and African countries stops soon.