Business

How to save on gas, with or without federal tax holidays

The recent spike in gasoline prices is now being felt almost everywhere.

The national average price per gallon of gasoline is now $4.94 after breaking $5 a gallon for the first time earlier this month. according to AAA. Last year at this time, the price was $3.07 a gallon.

According to a recent DailyPay report that surveyed more than 2,000 adults in May, this increase has greatly impacted the ability of most workers to cover their expenses and save for the future.

More from the “Personal Finance” section:
100 million adults have health care debt
The cost of financing a new car reaches a record $656 per month
How to start earning credit at a young age

The report says hourly workers find it even more difficult to cope. Approximately 81% said that higher gas prices had a negative impact on their ability to pay for basic necessities.

As a result, 44% of households earning less than $100,000 a year said they were saving less than last year or not saving at all.

To make ends meet, 22% of hourly workers said they had to take out a payday loan, one of the most expensive ways to get a loan.

To ensure an immediate reduction in gas station prices, President Joe Biden asked Congress to temporarily suspend the federal gas tax for three months. The federal tax is 18.4 cents per gallon of regular gasoline and 24.4 cents per gallon of diesel fuel.

“Will it help? Yes, but having said that, I don’t think there’s much chance of success,” said Patrick De Haan, head of oil analysis at GasBuddy. “There’s a lot of politics intertwined here.”

Also, if the gas tax holiday coincides with rising wholesale fuel prices, consumers won’t see much of an impact on refueling because the tax change will be offset by the higher cost, De Haan said.

On the other hand, prices have already begun to decline due to the fall in the cost of oil, which is a key component of gasoline.

“We have already seen price cuts, which is good news,” De Haan said. By the weekend of July 4, “hopefully we’ll be somewhere between 5-15 cents down.”

4 ways to save on gas

With or without a federal gas tax break, there are ways to protect yourself from gas station prices. Consumer savings expert Andrea Vorokh offers four pieces of advice:

  1. Track gas prices. Apps like GasBuddy, Gas Guru, and AAA TripTik can track the lowest price per gallon at nearby gas stations. You can save up to 30 cents per gallon, depending on where you fill up. Even if the difference doesn’t seem big, it can still be hundreds of dollars a year.
  2. Cash payment. The price per gallon can be 10-15 cents more per gallon for credit card transactions. Pay cash to get a lower price, or use a cashback credit card to earn up to 2% on these expenses. CNBC Select has a complete overview of the best filling cards based on your consumption habits.
  3. Move strategically. Traveling to and from work and school, or to and from sports training, can significantly reduce your travel time. You can even find deals using sites like ZimRide, RideJoy or eRideShare.com, Vorokh advised. Also, order online and look for free shipping to cut down on groceries, takeaways, and other essentials.
  4. Sign up for loyalty programs. In addition, the loyalty programs that many large gas station chains have can help offset the price at the gas station. Some grocery store chains may also offer cents per gallon rewards. For example, Kroger and Shop & Stop give fuel points for every dollar spent on products that can be exchanged at participating gas stations.

Subscribe to the CNBC YouTube channel.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button