How are you coping with rising gas prices?

[PMMM]

We need to buy premium for our cars as well. My wife and I both drive about 45 miles round trip each day. My wife has off commute hours and so enjoys a top freeway speed commute. I on the other hand have lots of traffic and generally take backroads. We both get about 32 mpg. I just saw a 76 station with premium for $4.09 per gallon. We aren't doing anything different thus far. Just paying more like most folks.

[Frugal]

Update: gas now up to $3.80+ in my town. I would say it climbed at least * ten cents a gallon for regular unleaded since I wrote the original post on 3/27/11. It is going to be $4 soon, and now I am trying to pin down a guess and see if I am correct as to when it will hit the $5 mark. I am driving less now, and each week I try to cut out more driving. I have family in another nearby town, so this is hard, because I think seeing family is way more important than saving $3.50-$4.00 round trip on gas just to visit with them each time. It is hard to have to make choices like saving money on gas vs. seeing family. Sure many people will be forced to make these choices in the days ahead, as gas goes to $5 likely before the start of summer officially at the end of June. I think it will be sometime in June or early-mid July when it hits $5. No later than the end of summer...

What do you think??

[Coronet]

Is everyone so sure about the $5/gal gas? I remember people talking about that price a year or two ago when gas prices skyrocketed, but it never happened.

[mike95910]

Rising gas prices are a killer for me. Since i am in the sales industry i am always on the road traveling all over my state. Trying to combat this by scheduling apts in the same area on the same days to limit the amount i drive. Its very difficult though

[disneysteve]

I am trying to pin down a guess and see if I am correct as to when it will hit the $5 mark.

Is everyone so sure about the $5/gal gas? I remember people talking about that price a year or two ago when gas prices skyrocketed, but it never happened.

I think it is completely impossible to predict the future price of gas. The price has no basis in reality. It isn't based on supply and demand. The price fluctuates wildly based on non-economic factors - political unrest, weather, etc. There is no justifiable reason for a station to hike the price several cents overnight when the gas in their tanks is already there and paid for. Sure, they might pay more next time they fill the tanks and raising the price at that point would be logical, but raising it when nothing has actually changed in the station owner's costs is just pure manipulation.

[jpg7n16]

I think it is completely impossible to predict the future price of gas. The price has no basis in reality. It isn't based on supply and demand. The price fluctuates wildly based on non-economic factors - political unrest, weather, etc. There is no justifiable reason for a station to hike the price several cents overnight when the gas in their tanks is already there and paid for. Sure, they might pay more next time they fill the tanks and raising the price at that point would be logical, but raising it when nothing has actually changed in the station owner's costs is just pure manipulation.

To some degree I think there's some truth in this, but to another I don't think that's right.

The store owner has no way of predicting prices, so cannot predict what the next tank will cost him/her. It's therefore the owner's job to attempt to sell any inventory on hand (gas, groceries, t-shirts, etc.) for the most money he can possibly get at any time. And he has to temper that with his competition who may or may not have the same costs as he does.

If another local store ran out of gas, and refilled at a much lower cost - he would have to lower his own price just to remain competitive (maybe below what it cost him). You may like the guy and all, but if gas is $1/gallon cheaper literally across the street - you'll buy over there.

So just are there may be various business reasons for needing to lower the price of gas below what it cost him (even though the cost has been fixed), an owner may need to raise prices already above cost as well.


It'd be a terrible business model to never raise prices when demand is up, but lower prices when demand is down.


Essentially the inventory cost is a sunk cost, and he must always match his price to a competitive market value.

[Joan.of.the.Arch]

Prices to come? Prices now? I just returned from a 1700 mile trip. I couldn't believe my good fortune when I came across a station selling at $3.42. I pulled right in and filled up. But then I traveled down the road a mere block and there was $3.41, yet next to that was $3.36! All the stations in this town were $3.47 or less. So there seems to be a gas price competition going on in Troy, Alabama.

Don't ask me to predict gas prices. I do know that historically they go up in summer.

[Frugal]

Well, I just paid $3.75, because my family members told me they bought gas both yesterday and today, and it had gone up six cents overnight from Sunday 4/3/11.
I top off my tank whenever I have ANY room in the tank at all beyond about 1/8 of a tank, because I know the next day it will go up per gallon a significant amount. I try to save a few extra dollars this way, and it is helping. I also shop around, and keep a close watch on prices at different local stations out here on the West Coast.

[krantcents]

I buy my gas at Costco (they sell below other stations in the area) and receive a 3% rebate. I try to curtail our driving particularly over the weekend. BTW, I drive a 95 Honda Accord and my wife has a 97 Prelude, both cars are well maintained and get pretty good MPG.

[kork13]

Prices to come? Prices now? I just returned from a 1700 mile trip. I couldn't believe my good fortune when I came across a station selling at $3.42. I pulled right in and filled up. But then I traveled down the road a mere block and there was $3.41, yet next to that was $3.36! All the stations in this town were $3.47 or less. So there seems to be a gas price competition going on in Troy, Alabama.

Don't ask me to predict gas prices. I do know that historically they go up in summer.

I've actually driven through Troy, AL many times going between FL, AL, & GA. From my experience, that has always been one of the better towns (price-wise) to gas up at.

As already stated, fuel prices are going to fluctuate, particularly as we go into the summer months, during which it typically increases significantly. But in the end, there's nothing we can do about it, so I simply say "don't complain". Walk, get a bicycle, downsize to a more efficient car, or suck it up and shell out. Those are the only options in my book...

[Andrew Jackson]

As I mentioned before we were recently given a 2001 Kia Sephia. I now drive that instead of my 99 Ranger. The first tank of gas I got 28 mpg with it which is what the govt. estimates say it gets on the highway. The next tank I got 29, the tank after that down to 27. But my last two tanks have both been at 30 mpg. My driving hasn't really changed I average between 65-70 mph and it is 90%+ highway miles. I think the uptick in mpg might be because i had more tires rotated and maybe they adjusted the tire pressure to where it needed to be?

I probably won't really worry about gas prices until they get up above $4.50 a gallon and start to push $5.00 But to be honest not really sure what I can do in the case that they do go up.

[glock35ipsc]

No change in driving habits here. We just readjust the fuel budget every month based on current fuel prices.

[greenskeeper]

Is everyone so sure about the $5/gal gas? I remember people talking about that price a year or two ago when gas prices skyrocketed, but it never happened.

you can thank the economic collapse for preventing $5/gal gas (temporarily)

[greenskeeper]

I think it is completely impossible to predict the future price of gas. The price has no basis in reality. It isn't based on supply and demand. The price fluctuates wildly based on non-economic factors - political unrest, weather, etc. There is no justifiable reason for a station to hike the price several cents overnight when the gas in their tanks is already there and paid for. Sure, they might pay more next time they fill the tanks and raising the price at that point would be logical, but raising it when nothing has actually changed in the station owner's costs is just pure manipulation.

The station owner will always charge for the cost to replace fuel in the tank. That's how they stay in business.

[Frugal]

Gas is up to about $3.80 here today. I paid $3.76 yesterday, and am now seriously thinking about riding my bike more for errands close to home. Any of you doing that? lol