Pain at the Pump
www.smartmoney.com By Stephanie AuWerter March 17, 2003
ACROSS THE COUNTRY, Americans are suffering from gasoline sticker shock. Just one year ago, the average price for a gallon of regular unleaded gas was $1.25, according to the American Automobile Association (AAA). These days it's $1.72 (as of March 17, 2003; click here for the latest prices) — a whopping 37% increase. In the past month alone, the average price per gallon has jumped eight cents. That's pretty dramatic when you consider that last year prices hovered consistently within a four-cent range, says AAA spokesman Mantill Williams.
The culprit: a perfect storm of factors affecting the price of crude oil, which is refined to create gasoline. Inventories are low thanks in part to the cold winter temperatures in much of the country, most notably the Northeast. (Freezing temperatures led to a higher demand for heating oil, which also comes from crude oil.) On top of that, a major strike in Venezuela has crippled that country's exports.
Exacerbating all of this, of course, is fear over war with Iraq — a scenario that appears more likely with each passing day. Whether prices will continue to climb depends on what sort of war it turns out to be. A short, successful war should cause prices to fall. But if it's a prolonged campaign — or if Saddam Hussein ignites his oil fields — you can expect prices to go even higher.
Higher gas prices mean tighter budgets for many drivers. Fortunately, there are lots of ways to save.
Shop Smart It pretty much goes without saying that you need to be a savvy consumer these days. Prices can vary — sometimes significantly — from station to station, so pay attention to which one offers the best prices, says Bill Bush, spokesman for the American Petroleum Institute.
Some Web sites can help you follow prices at local stations. At GasPriceWatch.com, more than 76,000 gas-price "spotters" track local prices and regularly update the site's data. Another site worth checking out is GasBuddy.com, a portal site that connects approximately 170 regional gas-tracking Web sites. AAA's Web site also provides regional gas prices.
And keep your eyes peeled. While rumors of price gouging are typically inaccurate, if you notice that a gas station has rapidly and dramatically raised its prices to a suspiciously high price (say by more than 50 cents overnight), report it to AAA or the Better Business Bureau, says AAA's Williams.
Feed Your Car Right Now's a good time to dig out your owner's manual to double check which type of gas your car really needs. Unless you have a luxury car or sports car, it's likely that your automobile requires plain ol' regular unleaded. So don't pay extra for a gas with a higher octane level, says Williams. Many ordinary drivers believe that a higher octane gas will make their engines perform better — but it almost never does. Higher octane levels merely prevent what's known as "engine knock," a condition that typically affects only high-performance cars.
Time for a Tune Up Regular tune-ups can make for greater fuel efficiency. Be sure to check the air filter, transmission fluid, spark plugs and oxygen sensor — all of which can have an effect on fuel efficiency, says Jim Kliesch, research assistant at the American Council for an Energy-Efficient Economy (ACEEE) . A faulty oxygen sensor (which is part of the car's emission system), for example, can cut fuel economy by as much as 40%.
Also, make sure the tires are inflated properly. Underinflated tires can reduce fuel economy by 2% per pound per square inch below the recommended level, according to AAA. (They're also dangerous for driving.)
Lighten the Load If you have a lot of junk sitting in your truck, dump it. The more your car is weighed down, the less fuel efficient it will be, says Kliesch. Granted, you'd need to haul around a payload full of anvils for this to make a huge difference in your fuel efficiency, since every 100 pounds reduces your fuel efficiency by just 1% to 2%. But these days every little bit counts.
Also, when transporting something, keep in mind that if you can fit the item in the car rather than tying it to the roof or putting it in a rooftop carrier, you'll be more fuel efficient.
Drive Nice Aggressive driving can be costly — even if you don't get slapped with a speeding ticket. Rapid starts and harsh braking require more fuel than does smooth driving. If possible, use cruise control on the highway, says Cathy Milbourn, spokeswoman for the Environmental Protection Agency (EPA). Maintaining a constant speed saves gas.
Serious speeding also reduces fuel economy. Traveling at 75 miles per hour compared with 55 miles per hour can reduce fuel economy by as much as 26%, says ACEEE's Kliesch.
Consolidate Trips Running several errands during one outing can save gas. "Several short trips taken from a cold start use twice as much fuel as a multipurpose trip covering the same distance when the engine is warm and more efficient," says Milbourn.
Buy a Fuel-Efficient Car If you're in the market for a new car, pay close attention to its fuel efficiency. This can save you hundreds or even thousands of dollars over several years. Vehicle selection "is the most important fuel-economy decision you'll make," says Milbourn.
For a list of the most fuel-efficient cars, visit Fueleconomy.gov, a Web site created by the EPA and the Department of Energy. Another site worth visiting is Greenercars.com, which measures cars based a "green score" that factors in fuel consumption and air pollution, including unhealthy tailpipe emissions (which contribute to global warming).
Finally, if you're truly willing to go green, consider purchasing a "hybrid" car (one that combines an electric motor and a gasoline-powered engine). Doing so can be good for the environment as well as your wallet. Not only do these cars get excellent mileage, but you could also be eligible for a $2,000 federal-tax deduction. For more, click here.