Oil Prices Keep Climbing: 5 Tips to Save Money on Gas
May 21, 2008 by Miranda Marquit
Filed under Finance
Oil prices breached $130 a barrel this morning. Yesterday they prompted a sell-off on Wall Street. And across the country they are affecting people’s every day activities.
But why are oil prices climbing? Didn’t the Saudis up production at the request of President Bush? Isn’t the US going to stop stockpiling? Shouldn’t this supply help keep oil prices lower?
Not necessarily. Oil prices are rising on what is likely to happen in the future. Demand from developing nations (like India and China) is expected to explode as those countries see an expansion to their middle classes (read: more people can afford cars). Future strain on supplies are expected to, in the future, limit the availability of oil.
And don’t forget that many expect things to go really bad in the Middle East at any time.
Additionally, speculators — including the venerable Goldman Sachs — expect oil prices to reach $200 a barrel in the relatively near future. Those kinds of expectations tend to drive prices higher. Speculators keep investing in oil, and as long as there are buyers, oil prices will continue to rise.
So, here are 5 tips for saving money on gas as oil prices rise:
- Proper car maintenance reduces energy needs: Inflate tires properly, tune the engine, change oil regularly, take unnecessary items out of the trunk.
- Check the lowest grade octane that is appropriate for your car. Hint: In mountain west states, most cars run fine on 85 octane, thanks to the high elevation.
- If the gas station offers a cash discount, take it!
- Drive smart: Start and stop smoothly, without sudden moves. Don’t rev the engine, and don’t drive fast. You can improve fuel economy by driving the speed limit (or even a little under), rather than being a lead-foot. Air conditioning tip: Use air conditioning only on the highway. In town — stop and go traffic — turn it off and roll down the windows.
- Trip consolidation: Plan your errands. Do them at once rather than going out multiple times. Plan an efficient route.
What are you doing to save money on gas?
image credit: sxc.hu
Until the OPEC boys cross over to the more trustable, stable Euro, the price of oil will remain high out of fear of currency manipulation by an American government that has already shown its willingness to protect it’s own ass even at the expense of its own people. Once the Euro or some Asian currency becomes the currency of oil exchange, expect things to calm down and the price to fall some, but demand is increasing and the speculators know it too!
Best to plan your happiness less around the misuse of oil so that when the crunch comes, driving a 4 cylinder diesel electric hybrid won’t be a traumatic change, using public transport won’t hurt, working longer hours for fewer days to save transportation costs, and living in an eco-home instead of a McMansion won’t drive you and yours to suicidal thoughts! Becoming an environmentalist helps buffer the convulsive changes we are about to go through, and this eco stuff give another reason to try to adapt.
You make a good point: Be prepared. We have a car that gets good gas mileage now (and only ONE car — we use public transport to fill in the gaps), and we plan on a hybrid next.
Slowing down consumption, and moderating what we feel our “needs” are can be great ways to not only save money on gas, but in other areas of our lives as well.
Also, keep your car clean. I read somewhere (AAA?) that having a dirty car can increase drag 12%, reducing your fuel economy.
So true. Hence the taking the unnecessary items out of the trunk. If you have a car piled with “stuff”, then it can seriously impact your gas mileage.
Fascinating that I just discovered that putting 3 more pounds of pressure in my tires (from 32 to 35 psi) seems to have increased gas mileage by 3-4 miles per gallon on my Prius hybrid. Also my wife and I figure out who will be driving more miles and assign the hybrid accordingly- gets 2 1/2 times the mileage over other cars. Given the driving we have to do (we live in country, work in city in LA area) we are saving about $40-50+ a week. Your suggestions make a huge difference!
Thanks for sharing your account of how much it can help to do a few simple things to increase fuel efficiency. A lot of little things, done over and over again, can really add up!
Thanks Miranda!
I can’t think of anyone who doesn’t want to save on their gas.
So true! And with gas prices moving higher in fits and starts (10 cent change in gas today where I live), saving all the money we can is especially important.