Will gas prices continue to fall? Check out how to save

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Gasoline prices continue to fall, but that may be little consolation to drivers whose gas prices have doubled over the past two years.

After hitting an all-time high of $5 in June, the national median gasoline price fell further to $4.52 on July 18, according to AAA.

AAA spokesman Andrew Gross explained in a blog post that the busy summer travel season typically pushes up gasoline prices, but lower oil prices have helped push them down. In addition, demand for fuel has fallen, which has further helped drive down prices at gas stations.

The average cost of gasoline per gallon is now 47 cents lower than it was a month ago. But natural gas prices remain much higher than this time last year due to the ongoing struggle between supply and demand.

President Joe Biden’s administration has approved the largest oil release in history from the world’s oil reserves, but the move has yet to prove it will push prices down to pre-2022 levels.

Biden’s latest attempt to ease consumer wallets is the federal gas tax holiday. His June 22 proposal would suspend the state gas tax from July through September, saving drivers up to 18.4 cents per gallon of gasoline (and up to 24 cents per gallon for diesel).

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Even as summer is halfway through, Biden continues to advocate for a gas tax holiday. Congress has little support for the gas tax holiday, and Democratic leaders have largely denied its potential effectiveness.

Meanwhile, some states are stepping in, offering rebates to residents to ease the ongoing financial pain caused by price increases across the board.

If you need help dealing with higher gas prices, there are ways to save.

5 ways to save on gas during the summer travel season

1. Find cheap petrol near you with the petrol app

There are useful apps that show you nearby gas stations and real-time gas prices. For example, GasBuddy allows users to update nearby gas prices and search by current location, zip code or city. GasBuddy also offers free rewards cards for users who offer gas discounts. The card is linked directly to the checking account and sent by post.

According to GasBuddy’s website, by swiping a rewards card and this pump, users can save 25 cents per gallon on the pump. According to USA Today, GasBuddy makes money by selling customer data preferences to gas station operators.

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2. Enroll in the Gas Rewards Program

Those with preferred gas station chains can benefit from participating in their rewards program. These programs reward repeat customers by offering discounts every time they fill up.

Exxon Mobil Rewards+ earns 3 points per gallon of fuel and 2 points per dollar spent at convenience stores and car washes. For every 100 points redeemed, you’ll earn $1 in shopping rebates, up to a maximum of 5,000 points redeemed at a time, for a total savings of $50.

3. Take advantage of grocery store rewards programs

Many grocery chains have loyalty programs that offer gas rewards. Kroger’s Forecourt Program offers one fuel point for every $1 spent at Kroger stores.

Get the best redemption value of up to 1,000 fuel points at $1 per gallon off gas at Kroger stations; 100 points can be redeemed for 10 cents per gallon at participating Shell stations.

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There is no limit to how many fuel points you can earn each month, but they expire on the last day of the month after they are earned. So use them every month to maximize your discount.

4. Fuel up with your Rewards credit card

Use your credit card responsibly to earn rewards at the gas station. Some credit cards have high income percentages for certain fee categories, including gas.

Make sure you pay off your credit card balance in full each month to avoid the extra cost of paying interest. Check out our picks for the best credit cards for gas.

5. Restock on Monday

A February 2022 survey by GasBuddy found that in most states across the country, gas is cheapest on Monday, and Wednesday, Thursday and Saturday the most expensive days.

Why are natural gas prices so high?

High demand for crude oil and low supply have pushed up natural gas prices this year. While the Fed has hiked rates three times so far in 2022 — and plans to do more in the near term to keep prices down — other factors internationally are also at play.

Crude oil, the natural resource used to make gasoline and diesel fuel, has seen its supply change dramatically during the pandemic. When Covid-19 first hit the world and fewer people were on the streets, major oil exploration companies cut oil production.

In April 2021, the Colonial Pipeline, the country’s largest fuel pipeline, was the target of a cyberattack that took it offline for six days. The shutdown has led to a shortage of natural gas across the country, pushing average prices above $3 ahead of Memorial Day in 2021. In October 2021, a major pipeline supplying fuel to the southeast burst and leaked, with heavy rains and flooding slowing repairs.

The war in Ukraine was an exacerbating factor for these problems. Russia, which produces about 10% of the world’s oil supply, was sanctioned for its invasion of Ukraine. The United States has imposed a blanket ban on Russian oil imports, which also means pressure on remaining global supplies.

OPEC, a coalition of oil producers, has pledged to increase output this summer but has fallen short of its goal. The group’s oil output in June was lower than expected due to disruptions in Nigeria and Libya.

The combined consequences of these scenarios mean states across the country are seeing sky-high gas prices. For example, the average gas price in California is $5.90 a gallon, while the current price in Illinois is $5.01.

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