How To Cut Your Gas Bill
This summer, like most, gas prices are expected to rise. The cost per regular-grade gallon is likely to average $2.92 from April 1 to Sept. 30, up 48 cents from $2.44 per gallon last summer--and higher than the $2.83 current national average, according to the Energy Information Administration's 2010 Short-Term Energy and Summer Fuels Outlook.
Oil industry analysts say British Petroleum's 46,000-square-mile oil slick in the Gulf of Mexico won't inevitably affect pump prices in June, although it could interfere with crude prices later this summer if oil deliveries to Gulf coast refineries are disrupted, or if the spill leads to increased drilling restrictions in the Gulf.
Crude prices play the biggest role in determining gas prices: They typically make up between 65% and 70% of the total cost of one gallon of regular gasoline. State and federal taxes contribute about 15% of the cost, distribution and marketing contribute 10%, and refining contributes about 6%.
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It's also a question of supply and demand. Summer weather means people drive more (according to AAA's annual Memorial Day forecast, 32 million Americans will travel away from home that weekend, with 87% of them driving a vehicle to reach their destination, up 5.8% over 2009), and higher demand for gas leads to higher prices.
Tropical storms can also affect prices because they disrupt distribution channels and drilling conditions.
"Hurricane season has been playing a toll on gasoline prices just since hurricane Katrina," says Patrick DeHaan, the senior petroleum analyst and lead blogger for GasBuddy.com. "In the last five years we've seen a lot of storms that have done quite a bit of damage to the oil industry, so it's something to keep an eye on now."
But there are plenty of things drivers can do to reduce how much they spend at the pump this summer. Using cruise control on the highway, babying the engine and driving smartly can all add multiple miles to a single tank of gas--and save hundreds of dollars over a year of driving.
Choosing Wisely
We consulted Gas Buddy's DeHaan and reports produced by the United States Department of Energy in compiling ways to save this summer. All fuel-economy benefit data and equivalent gasoline savings estimates are from www.fueleconomy.gov. We talked with Porsche spokesman Dave Engelman about what the Stuttgart, Germany-based company is doing to improve efficiency in their racecars. We also consulted Christie Hyde, a spokeswoman for AAA, about how fuel efficiency affects depreciation rates and the best way to increase gas mileage during summer driving.
The biggest gain in fuel economy is a one-time decision with far-reaching consequences: it involves the type and size of the engine in the car itself.
Smaller engines (4-cylinders and V6s) need less fuel than larger engines (V6s and V8s), which can mean a 20% difference in the amount of miles sucked from one tank of gas. Assuming a year of 15,000 miles, on fuel that costs $2.86 per gallon, the difference between getting 20 miles per gallon on the highway and one that gets 30 mpg is more than $700.
According to a AAA depreciation report released last month, the prospect of saving money at the pump--or not--affects not just what vehicles people choose, but the depreciation of the cars themselves. Last year small sedans were the only auto segment that decreased the amount they depreciated.
Hyde knows why: "We really believe it is being driven by this desire for more fuel-efficient vehicles. Even though gas prices had dipped for awhile, they're starting to come back up, and people are starting to look for more fuel-efficient vehicles and realizing--whether for financial reasons or environmental reasons or both--the benefit of those."
Certain types of engines also get better mileage than others. Diesel-powered vehicles offer a fuel-economy benefit of 40% better mileage than gasoline-powered engines. They do cost a bit more up front, but they save money in the long run: the $22,830 Jetta TDI gets a whopping 42 miles to the gallon on the highway and costs less to own over the long run than the base $17,735 Jetta, which gets 30 mpg on the highway ($35,021 over five years, versus $36,220).
Details Matter
After that initial purchase decision, it's the little things that add up to cheap driving. Shedding ski racks, tow apparatus and old luggage is one of them.
Even the pro racers do it: "We're spending lots of money trying to reduce the weight everywhere we can, every place that we can," says Engelman, who heads communications for Porsche's racing team. It's one reason why the company developed a unique flywheel system for its 911 GT3 R Hybrid racecar, rather than using a heavier hybrid-battery system. (A power generator fitted inside the car, next to the driver, delivers energy to electric motors near the wheels.)
But even something as simple as using the correct motor oil affects gas mileage. It's a small gain (about 2%, or $0.6 cents per gallon on the highway) but, combined with everything else, it'll add up.
How to Cut Your Gas Bill
Drive Smoothly
Rapidly accelerating and braking--driving aggressively in general, for that matter--will reduce your mileage by a third. Instead, change speed at sensible rates. It'll save money if you do.
Fuel Economy Benefit: 5% in the city; 33% on the highway.
Equivalent Gasoline Savings: $0.14/gallon in the city; $0.94/gallon on the highway.
Maintain Tire Pressure
Improperly inflated tires will decrease your gas mileage by almost 4%. Properly inflated tires are not just more efficient--they'll last longer, too.
Fuel Economy Benefit: About 0.3% for every 1 PSI drop in pressure of all four tires. Equivalent Gasoline Savings: Can save 9 cents per gallon.
Obey the Speed Limit
It's true that every vehicle reaches optimal fuel economy at a different speed, but for most cars efficiency decreases at anything over 60 miles an hour.
Fuel Economy Benefit: Up to 23% improvement.
Equivalent Gasoline Savings: For many vehicles, each 5 mph over 60 mph costs an extra $0.24 per gallon, and in some vehicles it costs an extra $0.66 per gallon.
Buy a Smaller-Engined Car
Smaller engines (4-cylinders and V6s) need less fuel than larger engines (V6s and V8s), and turbochargers can help make up the difference in power. So if you're choosing between a V6 and a V8 PRODUCT, go small.
Fuel Economy Benefit: As much as 20%.
Equivalent Gasoline Savings: Assuming 15,000 miles driven in one year, on fuel that costs $2.86 per gallon, the difference between getting 20 miles per gallon and one that gets 30 mpg amounts to $715.
Use the Right Oil
It's a small gain, but using the manufacturer-recommended grade of motor oil helps improve efficiency (use 10W-30 or 5W-30 as directed). And look for motor oil with an "Energy Conserving" label.
Fuel Economy Benefit: Up to 2%.
Equivalent Gasoline Savings: Up to $0.60 per gallon on the highway.
