Donate Car to Charity California, Donate Car for Tax Credit, Donate Cars in MA, Donate Your Car Sacramento, How to Donate A Car in California, Donate Your Car for Kids, Donate a Car in Maryland, Donating a Car in Maryland, Donate Cars Illinois, Donate Old Cars to Charity, Met Auto, Car Donate Reduce your gas consumption to reduce anxiety about gas prices How much did you pay for your last tank of gas? I paid $4.81 a gallon. Granted I was in South Africa, but it was scary watching the rand (South Africa’s currency) fly at the pump while the litres (or gallons, as we do it here) just crept along. Then when I returned home, I saw a headline in Barron’s magazine that really caught my attention: “Oil will hit $300 by 2020.” A leading analyst lays out the case for why the price of a barrel of oil will go cra-zee because of simple supply-and-demand market forces. The analyst even gets detailed enough to predict the price of a barrel will bounce around through 2014 and then from 2015 just start going up and up. How accurate is this prediction? I will tell you that no matter how brilliant somebody is, it’s very hard to make accurate predictions like this, especially in a commodities industry. I recall a few years ago when an article in Forbes called for oil at $40 a barrel when it was then around $110 a barrel. They were wrong then and Barron’s could be wrong now. These things are just too complicated to call. The reality is we have no control over the cost of a barrel of oil as a country or as individuals. But what we can control is how many gallons of gas we need to move ourselves down the road. The marketplace is changing so much with new alternative fuel vehicles coming and hybrids going mainstream. Electric cars and plug-ins hybrids are today the science experiments for pointy heads that hybrids once were. Getting highway miles per gallon of 40 on a vehicle will be pretty easy the next time you shop for a car. So should you go out and buy a newfangled electric vehicle like a Chevy Volt or Nissan Leaf in response to the Barron’s report? From a dollars and cents perspective, the answer is no way. It’s way too early and you’ll be a “pioneer” who gets financially slaughtered. You might instead want to consider being a “settler” and prospering by getting a hybrid that actually makes financial sense. But in the end, nobody really has a clue what gasoline prices will be even 6 months from now, let alone in 2020. You can guess by using figures about crude oil that’s in storage, the amount of crude coming out of ground and so on. But those are only educated guesses. The only thing you can truly control is how many gallons you need to burn! Ways to manage the rising price of gas What did you pay for gas the last time you filled up? I recall every news story on TV in the summer of 2008 was about the price at the pump. That’s when we were in the throes of a barrel of oil hitting $147 and the national average at the pump topping out at $4.11 a gallon. This time, however, I’m not seeing as much coverage because prices aren’t quite as extreme. The price of gas this time around is really an unusual phenomenon. If you look at supplies of oil and gasoline in North America, we have a pretty hefty amount. Plus, there’s a huge amount of oil being developed out of shale in the Canadian Rockies. So there’s no shortage to speak of, which is different than the last time prices ran up. So what’s going on? Well, we as a country don’t count as much in the whole international equation with oil. Emerging economies in the Third World are what drive oil demand today. Now that our nation’s historical control of the supply and demand equation is out of synch, what can you do to get some control back? First, don’t waste money on premium gas. Few vehicles actually need it — even if the owner’s manual says so. Know that if premium gas is recommended, it’s for reasons of horsepower usually; your vehicle will run fine on regular unleaded and you’ll save 20 or 30 cents a gallon. Second, consider buying gas anywhere other than at the major oil company filling stations. We’ve had a slow, steady generational shift away from buying gas at these pumps. Americans are increasingly buying more gas from independent convenience store chains, the warehouse clubs, Wal-Mart and the major supermarket chains. Speaking of the latter, Kroger recently opened its 1,000th gas station. Any of these alternative channels will usually save you 5 to 15 cents a gallon. The most common comeback I hear is, “Well, won’t off-brand gas hurt my car?” No. Gas is gas. At a time when the price is going up and up, isn’t it nice to be able to keep the amount you pay as low as you can?
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