Save More at the Gas Pump, South Cobb

According to the Department of Energy, the United States’ gasoline consumption may have peaked in 2007.  Changing demographics and better fuel efficiency may be the two main reasons for increasing demand. 

Then why the heck has prices at the pump been bouncing between $3.50 and $4.00 a gallon for the last couple months?  The answer is based on two factors of supply and demand.  The first supply factor is the price of oil, even though U.S. consumption is decreasing, the world demand is spiking, being led by the Chinese and Indian markets.  Oil forecasters expect the price of crude oil to bounce between $85 to $110 per barrel through 2012. 

The second supply factor is the gasoline refining process, currently only three refiners produce the EPA-mandated (May-October) “Atlanta blend” of gasoline.  To put this in perspective, my wife filled up on the South Carolina-Georgia border on the way home over the weekend and saved $0.18 per gallon.

Here in our household we have seen our year-to-date gasoline bills increase by 31 percent versus 2010.  The good news is that gas and oil purchases only represent a little over 5 percent of our annual household expenses.  Needless to say, it represents a big enough part of our budget to affect our driving and gas-pumping habits.  Here are some ways to take some of the bite out of the bill at the gas pump.

The most obvious way, price shopping:

• Keep an eye on gas prices before you need to refuel.  Kroger and Racetrac on Floyd Road seem to have lowest prices, but don’t forget about the Exxon at The Floyd Road Shoppette on Old Floyd Road.
• Utilize online services/apps such as gasbuddy.com
• Make sure you read the sign correctly and that the price at the pump is the same as advertised.  Some stations put the price of a “cash transaction” on the marquis and charge a different debit/credit card price at the pump.
• Ask your mechanic or check the Owner’s Manual of your car to see exactly which blend (regular unleaded or premium unleaded) and frequency to purchase at the pump.
• Look for member deals like Kroger or Costco
• Use a credit card that maximizes rebates for fuel purchases such as American Express cards

Also consider your gas-pumping habits.

• Try to fill your tank in the morning when the air temperature is cooler and less is lost to evaporation.
• Pay attention to how you fill, hold the handle and pump the gas slowly to minimize evaporation.
• Don’t overfill or spill.
• Make sure you recap your tank tightly and listen for the three clicks.
• Do not pump gas if the tanker is filling the underground tanks.  Will Forrestal, a Georgia Tech grad and 11-year executive in the convenience store industry says, “The swirling gas coming from the tanker truck stirs up the sludge that’s in the bottom of the tank.  It takes about two to four hours for the sludge to settle back down.”  This sludge then is pumped into your tank and will works its way into the fuel-injection system, decreasing performance and efficiency.

Some lifestyle changes can make a big difference, too.

• If you have multiple cars in your driveway to choose, choose the most fuel-efficient vehicle.
• Combine your errands so that you make less trips.
• Turn the AC “off” when you stop your car, and wait for one to two minutes to turn it “on” after you start your car.
• Only warm your car up for one minute, and keep the fan “on” with the doors open to let the hot air escape.
• Accelerate slowly and steadily after stops.
• Walk or bike to the store.

Some car maintenance tips to keep in mind:

• Make sure your tires are filled to appropriate pressure.  There is a sticker on the inside of the driver’s door that states the recommended PSI for your vehicle.  Go to the Autozone on Veteran’s Memorial and buy a tire gauge for $1.99.  Mike or Marco would be glad to help you.
• Check the tread on your tires; newer tires get better gas mileage than old ones.  Go see the guys at Stepside Tires on Veterans Memorial Highway.
• Make sure your engine is tuned-up; by spending a little up front, you can save hundreds over the course of a year.  Take your car to your mechanic or go see Butch at Jackson Auto on Fontaine Road.

Hope this helps your wallets and household budgets.  Enjoy the summer driving season and remember school's out, be careful and on the look out for our children!

Derek Nowatzki is a 23-year Mableton resident who has been serving the insurance, financial and tax needs of individuals in the Mableton area for over 10 years.  He can be reached at Derek@amsservices.biz