Some Good News: Gas Prices Keep Falling
By BEN ROONEY, CNNMoney
Posted: 2008-10-07 13:35:03
NEW YORK (Oct. 7) -- If there's one bright spot in a bad economy, it's that gasoline prices have fallen, and they're expected to drop even further.
As the global economy falters, demand for oil has dropped. And since the price of oil makes up about half of the cost of a gallon of gas, analysts see more relief ahead at the pump.
Find Cheap Gas
Comparison shop. Be a proactive consumer. Don't just pay the high prices at the closest station. Shop around to find the most competitive price in town. For a little help, visit http://gasprices.mapquest.com to compare prices in your area. You can find the best deal by zip code and street name, as well as check out prices by grade of gasoline.
Buy a Fuel-Efficient Vehicle
Consider buying a fuel-efficient vehicle, a hybrid vehicle, or an alternative-fuel vehicle. It could save you a lot at the gas pump and not to mention help the environment. FuelEconomy.gov offers tips on buying a new fuel-efficient car or truck.
Slow It Down
Gas mileage decreases rapidly at speeds above 60 mph, costing an additional 10 cents per gallon. Aggressive driving can lower gas mileage by as much as 33 on the highway and 5 on city streets, resulting in 7 cents to 49 cents per gallon. Don't get too emotional driving, its supposed to be a time to relax and reflect. Next time you get in your car stay calm, cool, and collected put your car on cruise control.
Stop Idling
Idling gets you zero miles per gallon. The best way to warm up a vehicle is to drive it. No more than 30 seconds of idling on winter days is needed. Anything more simply wastes fuel and increases emissions. Be conscious of your environment and your pocket.
Tune Ups
Most motorists don't realize it's the little things that can make a difference. Fixing a serious maintenance problem, such as a faulty oxygen sensor, can improve your mileage by as much as 40. Dirty spark plugs can cause misfiring which can waste fuel. Replacing a clogged air filter can save gas mileage by as much as 10, saving you 15 cents per gallon. Tune your engine; it'll increase gas mileage by 4. Also, damaged, loose, or missing gas caps, under-inflated tires, poor wheel alignment, and worn spark plugs all contribute to poor fuel economy.
Combine Errands
Instead of making several trips to the cleaners, grocers, post office and the bank, do all of your errands at one time. Before you hop into you car, plan ahead. Keep a checklist if necessary. This will save you time and money.
Park Your Car
Take public transportation. Walk it'll save you money and help you shed a few undesirable pounds. Carpool. You and some of your colleagues can take turns driving each other to work. Talk to your supervisor about telecommuting one day a week.
"We ought to see prices drop pretty quickly," said American Automobile Association spokesman Geoff Sundstrom. "We're well on our way to $3 gas within the next week or two."
The national average price for a gallon of regular, unleaded gasoline fell 2.4 cents to $3.480 from $3.504, according to a daily survey released Tuesday by AAA. That's down 18% from an all-time high of $4.114 a gallon hit on July 17.
Gas prices rebounded last month when hurricanes Ike and Gustav passed through the Gulf Coast where the bulk of the nation's oil refineries are located.
While the damage was not as extensive as some had expected, the storms caused a short-lived spike in oil and gas prices.
On Sept. 17, after Hurricane Ike passed through the Gulf region, the national average gas price was a full 35 cents higher than Monday's price.
"But now that refineries are back online and more product is available, prices have no where to go but down," Sundstrom said.
"Demand seems to be drying up week by week," he added. And given the challenging economic environment and the strains on household budgets, Sundstrom expects American drivers to remain conservative.
Crude tumbled more than $6 on Monday to close at an 8-month low of $87.81 a barrel. That's down 40% from its July peak of $147.27 a barrel.
"Since crude makes up about 50% of the price of gas, gas prices should go down," said Ray Carbone, president of New York commodities trading firm Paramount Options.
Carbone added that gas prices have not fallen as dramatically as crude prices because refinery utilization has been low due to last month's hurricanes.
Still, hurricane season does not end until November and oil prices are notoriously volatile, notes AAA spokesman Troy Green. He cautioned that gas prices will continue to fall "only if conditions continue to improve in refinery capacity and oil continues to retreat."
Copyright 2008 CNNMoney
2008-07-03 20:38:40
