Have you checked the price of gasoline recently? It’s still high and getting higher. Usually, at this time of year, the price of gasoline typically lowers down. However, that isn’t the case for this year.
The Unusual Price Hike
If you’ve been driving your car for years, you’ll notice a pattern with the gas prices. At this time of year, they usually go down a bit because the summer travel season is over.
However, at this time, we can see that the prices are still going up. This is due to the continuously increasing oil price. Currently, it’s about $80 a barrel, which was previously at $60 in August.
Why Is Oil Causing The Price Hike?
The Organization of Petroleum Exporting Countries has decided to stop increasing oil production. Their goal here is to build up a supply to lower the prices while the world is in economic recovery.
To put it simply, countries that export oil like Saudi Arabia aren’t getting more of the oil from the ground. This keeps the supply of oil all over the world at a low level and the price high due to the demand.
In recent years, there has been a decline in OPEC’s influence in the oil market. That’s because there are other countries that also produce oil such as the US. However, as of the moment, the oil producers in the US haven’t increased production that quickly. That’s because there is still fear that their fossil fuel investment isn’t a good decision at all.
Furthermore, there is also an increase in the demand for oil as energy companies face natural gas prices spiking. They are considering turning to oil as their source of heat instead of natural gas. That demand also affects the supply chain and also helps increase the price of gas.
What Is The U.S. Doing About It?
The Biden administration is frustrated at the current rising gas prices. It is possible that the Department of Energy would release crude oil to help ease up the prices. The oil would come from the U.S. Strategic Petroleum Reserve which can be used in case of emergencies.
However, some analysts fear that it may not have a big impact. They estimate that it may only lower down the price of a barrel of oil for about $3.
How To Cope-Up With Higher Gas Prices
Experts believe that the price hike for gas may not be permanent because the supply is continuously growing. There’d be a time when the supply will meet or even outgrow the demand.
However, it is still best to know how to cope up when the gas prices are up. The tips you’ll find below are great ways to save on gas whether the prices are at an all-time high or not.
Plan Your Trips
Most car owners just get in the car and drive to where they need to go. However, a better way to do that plus save some money is to be more careful in planning your trip.
For example, if you need to do your grocery and there is a grocery store you pass by on your way home from work, then that would be the best. It would save you miles driving back to it if you go on days when you don’t work.
Is there someone in the family or nearby that is also going your way at the same time? Let’s say you and your wife are off to work and you can pass by her office, it would be best to just drop her there than use two cars. With carpooling you don’t only save on gas, you also help lessen the carbon footprint.
Take Advantage Of Promotions
There are some credit cards that offer you rewards for essentials like gas. Cashback, whenever you fill up, is a great way to save money on your fuel.
There are also some gas stations that offer cheaper prices when you pay them in cash. Figure out what promotions are available in your area and use them.
Proper car maintenance helps keep your car in shape. That will prevent your car from wasting gas and use it more efficiently. Change the oil and filter, maintain optimal tire pressure and drive at a constant speed all help.