Yahoo Finance I Cut My Gas Costs From $261 per Month to $80: Here’s How I Did It
Average gas prices at the pump in New York are $3.67 a gallon for regular unleaded (as of May 30), according to AAA. That’s about a cent higher than it was a year ago, but a far cry from prices in June 2022, which hit more than $5 a gallon. Gas is a significant expense that’s hard to avoid — even if you live in a major city, like New York or Boston, with robust public transportation options.
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Even so, I’ve been able to reduce my gas costs in the past few years with a few easy changes.
Switch to Hybrid
If you drive a car with a traditional internal combustion engine, it might be worth considering the switch to a plug-in hybrid electric (PHEV), hybrid, or fully electric car (EV). Consumer Reports shared that EV owners can save $800 to $1,000 per year if they do their fueling at home. Plus, if you buy a qualifying EV or PHEV, you may qualify for federal tax credits — and state and local incentives.
I switched to a Hybrid Toyota RAV4 from a fuel-hungry 2014 Nissan Pathfinder in 2017. At an average of 1,000 miles per month, or 12,000 per year, I saved an average of 5.61 gallons per month choosing a hybrid model over the traditional 2017 RAV4, which gets 25 miles per gallon compared to my 32 mpg. With today’s gas prices, I’m saving $20 per month driving a hybrid.
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Buy Gas from Costco
Gas costs roughly 30 cents per gallon less at Costco, according to previous GOBankingRates findings. This amounts to a savings of $218 per year, or $18 per month. Of course, you have to pay $60 for the membership, but if you shop at Costco for other things, including their $5 rotisserie chicken, it’s worth it.
Bike Around Town
Of course, the best way to reduce fuel costs is to find other modes of transportation. I’m fortunate to live in a suburban community with a walkable Main Street. The area has a grocery store, nail salon, hair salon, a CVS and several pizza places. Whenever I can, I walk. I would estimate that I save roughly 10 miles of driving per week, or 40 per month, which is a little more than a gallon of gas in savings, or $5.
Download the GasBuddy App
The GasBuddy app shows where you can find the cheapest gas, whether you’re in your own town or far from home. Plus, when you use the GasBuddy debit card, which links to your bank account, you save up to 25 cents per gallon. However, you can’t use the GasBuddy app at Costco, so let’s consider this savings instead of, not in addition to, the Costco savings.
If you don’t have a Costco near you, don’t want to pay the membership fee, or want the flexibility to fill up at most gas stations nationwide, the GasBuddy app is the best way to save.
Work From Home
This is a dramatic change, but if you have the option to work remotely — even for a few days a week — you can cut your fuel consumption, and your costs, in half. I’ve worked from home since 2007, so it’s hard to estimate the savings. Before that, I commuted roughly 60 miles round trip, which is close to average based on U.S. Census statistics. That’s $6.92 per day on gas, or $34.60 per week. Not commuting saves $138 in gas per month.
Buy a New Car
While you’ll have an initial outlay of a down payment, taxes, title, and registration, buying a new car will save you money at the pump. I’m not factoring this into my savings as I haven’t made the leap to a new car yet. But if I were to buy a 2024 Hybrid RAV4, compared to my older model, I’d get 39 mpg, combined, rather than 32. That’s another $20 in savings.
Bottom Line
These suggestions may not be practical for everyone, but even small changes can make a big difference in your monthly budget. You can also reduce your fuel costs by being more mindful of how often you drive, combining errands into one trip, or carpooling to work.
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This article originally appeared on GOBankingRates.com: I Cut My Gas Costs From $261 per Month to $80: Here’s How I Did It
