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Understanding and Reducing Your Fuel Expenses

The Importance of Knowing Your Driving Costs

It can be incredibly helpful to understand the cost per mile you’re driving, especially with fluctuating gas prices. Knowing how to calculate fuel cost per mile gives you a clear picture of how your transportation impacts your budget. According to the American Automobile Association, the average driver in the United States spends around $3,000 annually on gasoline.

Below, we’ll explore practical strategies to lower your overall fuel costs, starting with understanding your personal price per mile.

Smart Ways to Lower Your Fuel Consumption

Opt for Public Transportation: Walking or biking uses no fuel, eliminating those costs entirely. In many areas, public transport like buses, trains, and trolleys offers viable alternatives to driving and can significantly reduce fuel expenses. Because these services share rides, the total fuel used per person is generally much less than if everyone drove their own car. In some locations, public transport is even free! When you factor in the other expenses of owning or renting a car, the incentive to use other transportation methods becomes even stronger.

Embrace Carpooling: Also known as car sharing, carpooling involves two or more people traveling together in a single vehicle to a shared destination. While a heavier car might use a bit more fuel, it’s usually far more efficient than two individuals driving separate cars to the same place.

Choose a Fuel-Efficient Vehicle: Driving a smaller car can make a big difference in your fuel consumption. The fuel cost for a small sedan can be about half that of a large SUV. Similarly, consider a less powerful engine if you don’t regularly need the extra power. Paying for an eight-cylinder engine when a four-cylinder one suits your needs means spending more on gasoline. Unless you frequently haul heavy loads, the added expense of a larger engine translates to higher fuel costs.

Maintain Your Engine: A well-tuned engine optimizes power and can significantly improve fuel efficiency. However, be clear if you take your car for a tune-up that the goal is to save fuel, not just increase horsepower.

Fixing a car that’s noticeably out of tune or has failed an emissions test can improve its gas mileage by an average of 4 percent, though ¹ this can vary depending on the specific issue. Addressing a major maintenance problem, like a faulty oxygen sensor, can boost your mileage by as much as 40 percent.  

Avoid adding unnecessary ornaments, ground effects, aerodynamic kits, and spoilers like deck-lid spoilers. While they might look appealing, they often increase the car’s drag, forcing it to use more fuel. These accessories generally don’t offer real handling improvements. Also, when carrying items on the roof, try to position them so they angle forward. This reduces the frontal area and minimizes drag, leading to better fuel economy.

Check Your Tire Pressure: Ensure your tires are inflated to the correct pressure levels. Properly inflated tires can reduce fuel consumption by up to 3 percent. Tires naturally lose about 1 PSI (pounds per square inch) per month, and cold weather can further decrease pressure due to air contraction. It’s recommended to check your tire pressure at least monthly, ideally weekly. Maintaining the correct pressure also helps prevent uneven tire wear.

Be aware that gas station air compressors aren’t always accurate. Some automatic compressors stop at a preset level. To ensure you reach the correct pressure, double-check with your own tire pressure gauge. Remember that recommended inflation pressures are for cold tires; if you’ve been driving, add about 3 PSI. Always inflate to the pressure recommended by your car manufacturer, not the maximum pressure listed on the tire itself.

Use the Right Motor Oil: You can improve your gas mileage by 1 to 2 percent by using the motor oil grade recommended by your vehicle’s manufacturer. For instance, using 10W-30 oil in an engine designed for 5W-30 can noticeably reduce your fuel efficiency. Even using 5W-30 in an engine meant for 5W-20 can lower your mileage by 1 to 2 percent. Look for motor oil with the “Energy Conserving” label on the API performance symbol, as this indicates it contains friction-reducing additives.

Plan Your Trips Strategically: The most obvious way to save gas is to drive shorter distances.

Plan your routes carefully. With modern GPS navigation apps, it’s easy to find the most direct route with the fewest stops and detours. You can also often assess which routes are likely to have the least traffic. When possible, choose highways over local roads or city streets, as the consistent speed maximizes fuel efficiency.

When driving in a city, try to park in a central location and then walk or use public transportation for other nearby appointments. Frequent stop-and-go driving in cities is very bad for your gas mileage. This also helps you avoid the high fuel consumption associated with repeatedly parking and pulling out in parking lots.

Factors Influencing Fuel Prices

Government Policies: Governments can influence gasoline prices (sometimes called petrol) through taxation, which can increase costs for consumers both domestically and internationally. Conversely, governments might provide financial support (subsidies) to certain industries to encourage business. Subsidized products or services can generally be sold at lower prices.

Financial Markets: Global oil prices are constantly in flux. Key crude oil benchmarks like Brent and West Texas Intermediate (WTI) are quoted in US dollars per barrel. Retail fuel prices are closely tied to these global oil price fluctuations.

Political Landscape: Political factors, including the structure of government, the ruling regime, key personnel, and significant events, can all impact fuel costs. For example, a change in leadership where the new leader has different views on climate change might lead to policy changes affecting fuel prices, such as the removal of subsidies. International political relationships also play a role; countries might engage in conflicts over resources or form alliances for trade, both of which can affect fuel costs.

Geographic Location: Some regions or countries have abundant oil reserves, while others have none. Consumers in close proximity to large oil supplies often benefit from lower fuel costs due to easier access. Areas without their own oil supply and that are geographically isolated (like some Pacific islands) can experience relatively high fuel prices.

Natural Disasters and Weather: Events like earthquakes, tsunamis, hurricanes, major floods, and other natural phenomena can disrupt the production, refining, and transportation of gasoline, potentially affecting fuel prices. For instance, a severe snowstorm might close roads, hindering the delivery of fuel and driving up costs in those areas. Hurricanes or earthquakes can damage oil refineries, causing abrupt production halts, which can also lead to increased fuel costs.