If you are a typical driver, a $.15 per gallon reduction in the price of gas will save you about $100 a year. There are many ways to avoid paying top dollar, including:
- Pay with a credit card that offers a cash rebate. For example, the Costco American Express® card rebates 3% on gasoline purchases. At current prices, that’s about $.10/gallon savings here in California. Another nice benefit is that this card has no annual fee. (Make sure you pay the credit card in full every month or the bank wins the game!)
- Some major grocery chains have partnered with large gasoline providers to offer discounts for shopping at each others’ stores. Check to see whether there are any offerings like this in your area.
- Use www.gasbuddy.com to help you find inexpensive gasoline in your area. Of course, you want to avoid driving your full-size SUV five miles out of the way to save a few cents per gallon. Your savings would be literally burned up on the way!
- Watch out for sneaky tricks that some gas stations use like switching the order of the pumps to trick you into buying premium fuel rather than regular. (See my 10/8/2010 post for details.)
Every little bit adds up. The $100/year savings could be worth nearly $100,000 over a 55-year driving lifetime if you had invested that money in the stock market rather than burning it up on gasoline purchases.