Maximizing a Gas Discount

Our grocery store offers a $0.10/gallon savings on gas for every $100 spent in a month.  The savings expire every month, i.e. they are not cumulative.   For reference, we don't make any special effort to shop at the grocery store.  We just accumulate savings with our normal grocery shopping.
 
Not long ago, we accumulated an $0.80/gallon savings due to a bonus for using the store's clinic.  This was a significant savings that I wanted to maximize. Typically, I use the savings for filling up my truck when it is near empty since it has a 22 gallon tank.   However, for an $0.80/gallon savings I got creative.  I decided to try filling up my truck and my spouse's car at the same time.
 
So my spouse and I met at the gas station and parked our vehicles such that hose from the gas pump could reach both cars. After filling up my truck, I transferred the hose to my spouse's car.   We were able to fill up both cars for $3.00/gallon.   That was a savings of over $24 since both cars needed over 33 gallons.
 
We definitely don't plan on doing this on a regular basis.  It's not worth the effort for the typical $0.10 to $0.20 savings we get.  However, it was definitely worth it for the one time we had $0.80 reduction in the price of a gallon of gas :-)
 
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This is not financial advice. Please consult a professional advisor.

Copyright © 2011 Achievement Catalyst, LLC

Finding Lower Gas Prices

Over the past couple weeks, I've noticed that gasoline prices have been falling. Today, I bought unleaded regular gasoline for $3.239 per gallon.

To help people find the lowest priced gas in their area, MSN.com has created a daily gas price by station locator which is searchable by zip code. The data is based on previous night submissions and may not reflect fast changing markets.

According to the locator, only one station in my area had a lower price than what I paid. I never thought I would feel good about purchasing gasoline at over $3 per gallon :-)

For more on Ideas You Can Use, check back every Tuesday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2008 Achievement Catalyst, LLC

Get Gas Under $2 Per Gallon, While You Can

Last week I bought gasoline for $1.96 per gallon and crude oil is about $50 per barrel. It wasn't long ago predictions were made that gasoline would be over $4 a gallon and crude oil would be over $100 a barrel. So what happened?

People adjust. As gasoline and oil prices rose, people began to change their habits by driving less, lowering the thermostat, or driving at the speed limit. Of course, some people change immediately, some take a while and some never change. Thus, there is a lag before there is lower oil usage, which results in lower prices. For reference, the 30 member countries in the Organization for Economic Cooperation and Development (OECD) saw oil consumption drop 0.6% in 2006, the first drop in more than 20 years.

Regression to actual value. Over time, the actual price will get closer to the real value of an item. Recently, this phenomena has happened to gold and to tech stocks (2000-2002) and is currently happening to housing. Eventually, the excesses of the market are absorbed and the prices settle back to reality.

Unusual circumstances. This winter has been unseasonably warm, resulting in lower heating needs. Thus, less oil has been used, resulting in lower gasoline prices.

While I am enjoying the lower gasoline prices, I am not expecting them to go much lower for exactly the same reasons given above. People will start using more gasoline, the decline in prices has likely overshot and gone too low, and summer/winter temperatures will become more normal. For my financial planning, I am using an estimate that gasoline will be in the low $2 range in the near term.

For more on Reflections and Musings , check back every Saturday for a new segment.

Photo Credit: morgueFile.com, John Sense

This is not financial advice. Please consult a professional advisor.

Copyright © 2007 Achievement Catalyst, LLC